Spain raised money in the markets in a highly anticipated bond auction. Tensions around the banking system have mounted. The country, now the epicenter of the debt crisis (until the Greek elections), had success in raising the maximum amount desired, but the price kept creeping up. Nevertheless, hopes for some kind of bailout are currently stronger than the actual results. Spain raised 2.074 billion euros, just above the 2 billion maximum target. It sold bonds for 2014 (LTRO covered), 2016 and 2022 (benchmark ten yield bonds). All the auctions enjoyed a higher cover than earlier auctions. This means there’s still high demand. However, investors still demand a high risk premium: all the yields were higher than in previous auctions, with the 10 year yield crossing the 6% mark, higher than the previous auction although lower than the existing yield in the secondary market: currently at 6.11%, lower than in previous days. The high demand with low prices could be interpreted as expectations for a bailout that would eventually push bonds higher (and the yield lower). Talk about a bailout for the troubled Spanish banking system has heightened in recent days, as global pressure on Germany became stronger. Spain is usually seen as “too big to bail”. A small bank bailout is now on the cards, yet this is only one of at least 4 bailout options. The euro is also high, flirting with resistance at 1.2587. 1.2623 is much stronger resistance. For more on the euro, see the EUR/USD forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next AUD/USD Close to Parity on Positive Australian Figures, Spanish Yohay Elam 10 years Spain raised money in the markets in a highly anticipated bond auction. Tensions around the banking system have mounted. The country, now the epicenter of the debt crisis (until the Greek elections), had success in raising the maximum amount desired, but the price kept creeping up. Nevertheless, hopes for some kind of bailout are currently stronger than the actual results. Spain raised 2.074 billion euros, just above the 2 billion maximum target. It sold bonds for 2014 (LTRO covered), 2016 and 2022 (benchmark ten yield bonds). All the auctions enjoyed a higher cover than earlier auctions. This means there's… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.