Weekly Eurozone Watch: Ireland Trades Through Italy

Key Data Points
German 10-year Bund 11 bps lower;
France 12 bps wider to the Bund;
Italy 10-year 14 bps wider to the Bund;
Spain 8  bps wider;
Portugal 11 bps wider;
Ireland 13 bps tighter;
Greece 75 bps tighter;
Large Eurozone banks consolidate recent gains;
Euro$ down 0.95 percent.

Ireland trades through Italy 10-year yield;

Comments
– Spain’s successful 10 year bond sale brought yields down  to an average yield of 5.67%, compared with 6.65% at the previous auction;
– Poor PMI figures  in Europe, the US, and China sent Bund yields and bank equities lower;
– Bundesbank president, Jens Weidmann, will meet Italy’s economy minster, Vittorio Grilli, next Wednesday;
– Spain’s Rajoy may be considering freezing pensions and bringing forward a planned rise in the retirement age.  The  austerity measures will hurt the PM politically but gives Madrid more cred with EU policymakers;
– Momentum for independence in Catalonia,  the wealthy region of northeastern Spain and 20 percent  Spain’s economy, is increasing;
– German Finance Minister Wolfgang Schaeuble says Spain should not yet take a bailout as borrowing costs have fallen in recent weeks.

SourceGuardian and Reuters

(click here if charts are not observable)

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