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.
Ã¢â‚¬Å“Overall funding pressure is losing steam,Ã¢â‚¬Â said David Schnautz, a fixed-income strategist at Commerzbank AG in London. Ã¢â‚¬Å“We expect the peripheral markets to enjoy even more potential outperformance against the core. Obviously we still have this event risk looming with the banksÃ¢â‚¬â„¢ stress tests.Ã¢â‚¬Â
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