European Comments Before the EU Summit

Italy debt costs keep rising.
Italian debt was bought for 2.96% yield, the previous debt issue was prices at 2.10% for six month bonds. Spain also issued debt early this week and paid 3.24% for six month bonds, which could go even higher for future issuances if there is a formal rescue request to shore Spanish banks.

Italian 10 year bonds are at a 10 year high are above 6%.

Merkel to talk with French President Hollande.
A day after commenting on the Eurobonds as a bad idea as it is “economically wrong and counterproductive” the fact is that other European members don’t share her opinion, and it is telling that she is visiting one of her biggest rivals in newly appointed French President Francois Hollande.

Interesting fact:
This will be the 20th European Summit since December 2009 as per Belgian MEP Guy Verhofstadt

Pre Summit quote:

“I’m only looking to what’s happening in the last meeting between the four leaders – of France, Italy, Spain, and Germany – meeting in Rome on Friday [22 June] where Hollande says: “Yeah, I don’t want to give more sovereignty to Europe if there’s no solidarity”, and Merkel saying: “I don’t want to give more solidarity if there’s no transfer of sovereignty”.
It’s like two children! What do you normally do with such two children? You … say “OK, it’s over now” with both of them.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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