€4bn went at the highest rate since Feb 2012. They went for 1.57% on July 17 and are currently yielding 1.81%, in the market. Bonds in Spain and Italy are seeing continued falls in their yields.
- Italy 4.20% -3bp
- Spain 4.42% -1bp
Normally a drop in yields for Spain and Italy would be supportive to the Euro. Twinned with the GDP data we are probably seeing a move out of bunds into Spain and Italy as money looks for better yields on an improving European economic picture.
German 10 year bonds chart 14 August 2013
