Chart: EURUSD and 10 Yr Spanish Yields
May 29, 2012
There’s been a lot of talk about Spanish 10 year bond yields rising to 7 percent. We’ve been at higher levels in 2011 but at that time the EUR/USD was trading much higher. 7 percent is a critical level because that is the rate that pushed Greece, Portugal and Ireland to beg for aid. The orange line is the EUR/USD and the white line is Spain’s 10 year bond yield. That divergence is looking ugly!
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Posted in 2012 elections eurusd, 2012 elections us dollar, 2012 eurusd forecast, ECB, ecb rate cut, eur/usd
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May 31st, 2012 at 7:23 pm
The ECB and several European countries must decide soon if they are willing to provide the mechanisms for the rescue of Bankia or prefer to let the Spanish treasury exhaust its possibilities to borrow.