By Nick Nasad | April 11, 2012 1:21 AM EST
EUR – Spanish Yields Push Towards 6% (w/ Video)
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EUR – Spanish Yields Push Towards 6% (w/ Video)
In Monday's preview of the week ahead, we covered the concerns regarding Spain and why the bond market was targeting it again in 2012. There is a concern that austerity measures will further undercut a weak economy, making recession worse, which will hit a housing market that is still in contraction. As a result bank balance sheets will only get worse, which is creating fears of a bank bailout. All of that weighs on the prospect of Spain being able to finance and pay back its debts and as a result investors are demanding higher yields. It's a negative feedback loop that doesnt look to be stopping, which should pressure the EUR throughout the 2nd quarter.(Apr 11, 2012 01:19 AM
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