14 November 2011

EUROZONE / ITALY / SPAIN : No "Super Mario" Bond Bounce; Roma Pays Record Rate; Madrid's Interest Hits 6% Level.


     So much for speculation that 'the markets' would reward Italy with lower bond rates...after chasing Berlusconi out of power...and installing technocrat Mario Monti as interim head.
     There was no 'Super Mario bounce'...instead it was more like a 'dead cat bounce'.
     Italy set another painful new record...by selling E3bn/$4.2bn of 5-year bonds....with a 6.29% yield...the highest rate since 1997.
     The market's lack of confidence spread again to Spain...where government bonds rose above 6%...for the first time since August.