Euro Unable to Hold Recently Gained Ground - 28.5.2012
The sovereign debt crisis in Europe continue its way even though some hope was given on the weekend from Greek voters that the possibility of an exit is reducing. Spanish 10-year bond yields rose after Bankia group, a Spanish bank reported that will seek 19 billion euros of government support. The 10y Spanish government bond yield rose by 14.7 basis points or by 0.147 per cent to 6.41 per cent, the highest since November 2011. At the same time the German 10-year bund fell by 0.6 basis points to record low yield of 1.364 per cent, widening the Spanish-German spread further and indicating that investors are seeking for safer assets. The Euro is heading towards the previous record low at the 1.2496 and appears that soon is going to test the low.