The yields on ten year Spanish government bonds are dropping. At the moment they stand at 5.13% 5.10%, a significant drop from yesterday’s 5.3% and 5.6% earlier in the week. This is a sign of high hopes that the market is expecting a big bond buying scheme that will lower the yields and return liquidity to the markets.
There are doubts that ECB president Jean-Claude Trichet will indeed go with a big US style scheme. See more about the doubts on French Style QE.
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