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Spanish Bond Yield Rises To Euro-Era High

fxbom.com
05:37 PM

LONDON — The yield on the benchmark 10-year Spanish bond hit a euro-era high Thursday, while French bonds also came under pressure ahead of debt auctions later in the day which will serve as a crucial test of appetite for bonds issued by highly indebted euro-zone countries.

The 10-year Spanish bond yield climbed 20 basis points to 6.57%, according to Tradeweb data, marking the highest yield since the advent of the euro.

The 10-year French bond yield rose three basis points to 3.72%, while the 10-year French/German yield spread climbed seven basis points to a euro-era wide of 195 basis points.

WORLD FOREX: Euro Falls To Fresh 1-Mo Low On Debt Woes

fxbom.com
02:09 PM

TOKYO -(Dow Jones)- The euro fell to fresh one-month lows against the dollar and yen on Wednesday in Asia as worsening European bond market conditions weighed on investor sentiment toward the region’s debt problems and the single currency.

The euro fell to its lowest level since Oct. 10 at $1.3437 and Y103.59 earlier in the day. Tokyo traders said some short-term-focused investors executed automated stop-loss selling orders around $1.3500, triggering the broad euro sell-off.

Traders pointed out the worsening outlook for the European debt problem, which has been pushing up European sovereign bond yields recently.

ECB Weidmann Warns Against Using Monetary Policy To Fix Fiscal Problems

fxbom.com
07:22 PM

FRANKFURT -(Dow Jones)- European Central Bank governing council member Jens Weidmann warned again Monday that policy makers must stop relying on central banks to fix fiscal policy problems, adding that Italy can solve such issues on its own, but at present isn’t nearly fully exploiting its growth potential.

The central banker, who also leads the Deutsche Bundesbank, told a conference that the “appropriation of monetary policy for fiscal policy purposes must come to an end.” He added that this is all the more true because continued monetary policy intervention in the realm of fiscal policy ultimately takes pressure off governments to reform. In the end, this doesn’t make a sustainable solution to the crisis easier, but rather delays it, he argued.