Hot Features
Premium
Register to chat with like-minded investors on our interactive forums.
Spain has this morning sold 3.0 billion euros worth of short-term debt, but with the highest rates since November.
Yield on three-month bonds was 2.362% – a huge increase from last month’s 0,846%. Meanwhile yield on six-month bonds was 3.237% up from 1.737%, the Guardian reported.
Credit ratings agency Moody’s last night downgraded 28 Spanish banks. This amounts to more bad news for the Spanish economy and eurozone as a whole, following the lowering of Spain’s sovereign rating to Baa3 two weeks ago.
Meanwhile, German Chancellor Angela Merkel yesterday appeared to rule out plans to mitigate the eurozone’s economic woes with more debt sharing, a so-called ‘easy’ solution to the crisis that Germany saw as unsustainable.
Speaking in Berlin, Merkel said she was concerned this week’s crucial euro crisis summit would be too focused on ways of ‘sharing debt’ a measure popular with other nations but one which she deemed ‘economically wrong’ and ‘counterproductive’.
Germany has always favoured to solve the crisis through reform and deficit reduction, although ministers in Brussels this week are expected to discuss a cross-border banking union and closer fiscal integration, as well as rescue mechanisms such as a debt redemption fund and eurobonds.
In other euro crisis news, Cyprus became the fifth eurozone nation to request a bail-out, Spain made a formal request for European funds and the euro sat at a two week low this morning as investors remained understandably nervous.
