Successful European Bond Sales Ease Credit Concerns

Over the last few days, Spain, Ireland, and Greece have combined sold nearly 10 billion euros (US$13 billion) of debt. There is even growing demand for more short-term bonds from these high-deficit countries and this is easing concern for the rest of the euro zone.

“Overall funding pressure is losing steam,” said David Schnautz, a fixed-income strategist at Commerzbank AG in London. “We expect the peripheral markets to enjoy even more potential outperformance against the core. Obviously we still have this event risk looming with the banks’ stress tests.”

Source: Bloomberg

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