Thursday, January 12, 2012

Spanish yields fall

Spain Sells Twice Bond Target as Yields Plunge

 By Emma Ross-Thomas and Chiara VasarriSpain sold 10 billion euros ($13 billion) of bonds, twice the target for the sale, while Italy sold 12 billion euros of bills, easing concerns the countries would struggle to finance their debts and sending bonds and the euro higher.
Comment: European banks swim in money. They can borrow at almost zero at the ECB and buy Spanish bonds at a bargain. The show will go on as long as inflation is tame. MAybe this can be very long time as it is shown by the Japanese and US example. Strange, indeed.

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