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26 Apr 2013
Forex Flash: Italian and Spanish banks bought more sovereign bonds in March - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that Italian and Spanish banks bought more sovereign bonds in March and this is paying off here in April.
Over the past month, they see that Italy's 10-year bond yield has fallen almost 50 bp and the Spanish 10-year yield has rumbled lower by nearly 70 bp. Further, Italy sold 6-month bills today at record low yield and there appears to be progress toward forming a new government in Italy, but it still seems several days away at least. The Spanish government is expected to unveil a 3-year growth plan before the weekend.
Over the past month, they see that Italy's 10-year bond yield has fallen almost 50 bp and the Spanish 10-year yield has rumbled lower by nearly 70 bp. Further, Italy sold 6-month bills today at record low yield and there appears to be progress toward forming a new government in Italy, but it still seems several days away at least. The Spanish government is expected to unveil a 3-year growth plan before the weekend.