Spanish and Italian Yields Fell on Monday, Euro Strengthens - 6.8.2012

Spanish and Italian 10-year bond yields cooled as speculation increased for ECB bond-buying from indebted countries. On Thursday Super Mario reported that ECB is ready to buy debt in September, together with bailout funds only if country-members request to use euro-zone rescue funds. Spanish 10Y yields rose to 7.16% on Thursday due to the lack of direct action by ECB and Italian 10Y Yields rose to 6.28%. However, on Monday Spain’s 10Y Yields dropped to 6.80% and Italian to 5.97% as Spain’s Prime Minister signaled that may ask EFSF’s aid and investors focused on positive points of Thursday’s ECB press conference. Falling yields have been supportive for the Euro today which rose against the US dollar from support at 1.2341 to 1.2397, up by 0.45%, it was lastly seen at 1.2380. Against the British pound the Euro was more aggressive, rose from 0.7918 to 0.7960, up by 0.53%.