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Spanish 10 year bonds continue weighing on the Euro. 10 year yield has reached 5.25%, continuing rises from yesterday, when Spanish bonds edged up to 5.15%.

Many analysts are comparing the Spanish bonds with the benchmark German bunds, but as this article says, the EU aid costs will soon start threatening Germany itself, with a rising premium on defaults, for the “safe countries”

Credit default swaps (CDS) measuring risk on German, French and Dutch bonds have surged over recent days, rising significantly above the levels of non-EMU states in Scandinavia.

Tensions in Spain, the Euro-zone’s fourth largest economy will also rise on Sunday’s regional elections in Catalonia.

Euro/Dollar is digging lower, currently at 1.3250. It fell under the 1.3267 line and will find further support only at 1.3114. See more technical lines in the EUR USD forecast.

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