Home > Resource Hub > Daily Market News > Spanish and Italian concerns

Spanish and Italian concerns

Spanish and Italian concerns

Spanish and Italian 10-year bond yields were hit yesterday as investors sought better returns for the risks they are prepared to take. Spanish 10-year debt rose above the 7% threshold, considered to be unsustainable by the markets and the level that has historically caused issues for Greece and Ireland. Italian yields also rising to 6.1%. In stark contrast, the yield on 6-month German debt fell to a record low of -0.3%, as investors were prepared to actually pay to hold German debt.

There was little new progress to lift the mood on the markets from last night’s meeting of Eurozone finance ministers. They did agree the first €30 billion instalment of bailout funding for Spain’s banks would be paid by the end of July. Finance ministers also agreed to extend the 2013 deadline for Spain to cut its budget deficit to the EU limit of 3.0% until 2014. All 27 EU finance ministers meet today.

China’s trade surplus widened in June as import growth weakened, underscoring worries about both the pace of economic growth.

All in all it will be the USD that continues to benefit from all this risk with its safe haven status.

Currency UK will offer you the best exchange rates available and ensure that you subsequent international transfers are handled as quickly and as efficiently as possible.

Do you want to earn some extra money? Then you can profit from our affiliate program by referring a company or friend that may benefit from our services and earn a commission in return. Contact us now on +44 (0)20 7738 0777 or click here.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.