Spanish bond yields are on the decline today after peaking at 7.64% late yesterday. We’ve fallen back to 7.24% on hopes of some sort of EU hocus-pocus to intervene in markets and artificially lower rates.
Bond buying by the EFSF/ESM or the ECB continues to be the preferred method to distort reality in the near-term.
Hell, why not even grant the ESM a banking license, so they ECB can lend them the money to buy Spanish debt? Great idea, right?
Right…
Despite the improved tone in Spanish bonos, EUR/USD remains capped at 1.2170 near-term.
