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Spanish Government Bond Yields

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http://www.cnbc.com/id/37701163

Spain T-Bill Yields Jump; Doubts Emerge over Rating

Published: Tuesday, 15 Jun 2010 | 6:19 AM ET

By: Reuters

Spain's Treasury raised 5.2 billion euros at its 12- and 18-month T-bill auction on Tuesday, but the substantial premium to the same auction a month earlier raised doubts over the country's credit rating.

The 12-month bill paid an average yield of 2.303 percent compared to 1.59 percent in the same auction in May, while the 18-month gave 2.837 percent, up from 1.951 percent.

"The bid/cover was respectable and they managed to get the bonds away. But this was hardly a success with about 5.2 billion euros sold, at the bottom end of the target," said bond strategist at Monument Securities in London Marc Ostwald.

../

2 year notes have doubled in the last couple of months:

http://www.bloomberg.com/apps/quote?ticker=GSPG2YR%3AIND

The next Greece or far worse? 40% youth unemployment too. Didn't they sell off the last of their gold reserves recently, to pay for their ongoing budget deficit:

http://www.gata.org/node/5326

Will austerity ssve the day?

Edited by AvidFan

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Just think how much it would be if the buyers couldn't immediately dump this on the ECB.

So the pattern keeps on:

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

One month later....

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

One month later....

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

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So the pattern keeps on:

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

One month later....

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

One month later....

1. Yields go high, too high for said country to service its debt

2. Markets panic and sell off

3. Press write about the next big crunch

3. ECB / central bank announce more bailout / funny money

4. Markets settle down and press start writing about house prices rising and forget doom and gloom

Seems about right. Question is what is the end point ? Germans say no ?

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Newspaper headlines are saying "Spanish banks Bust" stuff like that, thought there would have been a busier thread,what is actually going on in Spain?

i think everyone is holding off until the big guns enter the world Cup tomorrow, alot of it is down to fear of being ripped a new one by Switzerland, its a shame to see the big guns meet so early, its a game that would have graced the final

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The jump is even higher than that:

An auction of Spanish debt yesterday underlined how fast the situation is deteriorating. Yields on one-year debt reached 2.45pc compared to 0.9pc as recently as April, suggesting that the markets do not view the EU's €750bn rescue shield as credible.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7831117/Spain-plays-high-stakes-poker-game-with-Germany-as-borrowing-costs-surge.html

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Would you believe it, the man from Del-IMF is dropping in on Friday.

The head of the International Monetary Fund, Dominique Strauss-Kahn, will travel to Spain on Friday for talks on the economy with Prime Minister Jose Luis Rodriguez Zapatero, an IMF spokeswoman said on Tuesday.

"He is in Europe this week, and is taking this opportunity to discuss global economic developments with the Prime Minister, and to consult with him on developments in Spain, including the government's economic policies and reforms,"

http://www.reuters.com/article/idUSWBT01398520100615

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The complacency about the end of the EZ's crisis is foolhardy. Spain is still in trouble and headed toward a Grecian episode:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7831117/Spain-plays-high-stakes-poker-game-with-Germany-as-borrowing-costs-surge.html

Spain plays high-stakes poker game with Germany as borrowing costs surge
Spain has upped the ante in a high-stakes poker game with Germany, pushing for the release of EU stress test results for major banks in a move that risks precipitiating a dramatic escalation of Europe's financial crisis...../
Spain was pummeled yet again on Tuesday as credit default swaps (CDS) measuring bond risk on Spanish debt jumped to 245 basis points,
approaching an all-time high.
Default insurance for Greece rocketed after Moody's downgraded it to junk on Monday, forcing bond indexes to sell up to €20bn of Greek debt. Ireland and Portugal also jumped sharply, with mounting credit stress in Belgium following the electoral triumph of Flemish separatists.
An auction of Spanish debt yesterday underlined how fast the situation is deteriorating.
Yields on one-year debt reached 2.45pc compared to 0.9pc as recently as April, suggesting that the markets do not view the EU's €750bn rescue shield as credible.
/indent]
Edited by Realistbear

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i think everyone is holding off until the big guns enter the world Cup tomorrow, alot of it is down to fear of being ripped a new one by Switzerland, its a shame to see the big guns meet so early, its a game that would have graced the final

Once again a masterful piece of analytical foresight by the Suisse Miss

Edited by Tamara De Lempicka

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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