Spanish Bond Yields Flirt With 9 Month Low

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Trichet’s extensive bond buying plan of Italian and Spanish bonds is doing wonders. Yields on 10 year Spanish government bonds fell to 4.98% and they continue sliding.

If they close at these low levels, it will be the lowest close since November 2010, just before the Irish crisis erupted. Since then, Spanish yields were above 5%, and in the recent round, they surpassed 6%.

Italian bond yields are lagging behind: they are currently at 5.05%. The November – July range for these bonds was 4.5% to 5%. Italy used to be considered more safe than Spain. Not any more.

This has a positive affect on EUR/USD. See the euro dollar forecast for more on this pair.

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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 the 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.

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