Spanish bonds under pressure
With a US Federal holiday and no economic data releases there was little to capture the market’s attention yesterday. Despite a recent bounce, sentiment surrounding the euro remains heavy with Spanish bonds coming under renewed pressure prompted by ongoing concerns over the banking sector.
The yield on Spanish 10-year bonds rose to almost 7% yesterday. The risk premium demanded by investors for Spanish debt rather than German benchmark debt reached over 5%, its highest level since the launch of the euro. Spanish Prime Minister, Mariano Rajoy, pinned the blame for the rising borrowing costs on concern about the future of the euro. He again ruled out seeking outside aid to revive a banking sector that is still
suffering from a fragile property market.
This morning’s data from Japan was a mixed bag. Unemployment reported a little higher than expected with the jobless rate edging up to 4.6% in April from 4.5% in the previous month. However, Japan’s retail sales and household spending rose in April indicating that
domestic demand in the world’s third-largest economy may be picking up. Retail sales climbed 5.8% from a year earlier, while household spending rose by 2.6%.
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.