Spain’s debt situation “worrying the ECB temporarily holding stability
As Europe’s fourth largest economy, Spain’s debt situation, “the focus of concern to all parties. The country on Wednesday, government bonds auction results show that the winning bid yield than the previous auction a significant rise, which means that the confidence of investors in the country’s assets decline. Auction results announced, Spain’s 10 year bond yields rise, the euro exchange rate also showed a decline.
However, although the market in Spain doubt rekindle the face of high inflation situation, the European Central Bank announced on Wednesday still maintaining its benchmark interest rate unchanged at 1% level.
Ten Spanish bond yields rose
the Government of Spain said on Wednesday, the day a total sale of 2.59 billion the euro bonds . The average interest rate paid by the Government of Spain for the three bonds to 2.89%, 2.44% of this figure is compared with three copies of the auction has increased. The 2015 maturity Treasury bonds tender in multiples of 2.41 times, 4.96 times less than 3 on sale government bonds significantly.
affected the Spanish bond yields rose. 19:10 GMT Thursday, ten Spanish bond yields reported 5.63, rose 0.22
Spain Budget Minister Montoro said on Tuesday that the Spanish government debt to gross domestic product (GDP) ratio of this will rise by more than 10 percent to about 80%. Requirements under the Government of Spain on Tuesday’s Budget, the total amount of tax increases and expenditure reductions to reach 27 billion euros, in order to the country is the current deficit as a percentage of GDP from 2011 8.5% to 5.3%.
euro zone unemployment rate rose to 14 up to
In addition to Spain, the euro area more countries to the same subject to the negative impact of severe austerity policies. The recently released data show that the euro zone unemployment rate rose to over 14, the highest since the last manufacturing shrinking.
Eurostat data released Wednesday showed that Eurozone retail sales rate fell to 0.1 percent, the rate fell to 2.1 percent, weaker than expected. According to data released Monday, the euro zone unemployment rate climbed from 10.7% to 10.8%, a record 19,976, the highest since. Spain’s unemployment rate was 23.6% among the 17 countries of the euro area. The data released Tuesday showed that euro zone producer prices rose for the fifth slowing down. Eurostat pointed out that the producer price of the euro area 17 countries on the same period rose 3.6 percent, a revised up 3.8 percent.
three major European economic research institutes forecast report released on Tuesday that the euro zone may be in stagflation, economic growth is stagnant while prices rise. German Institute of Economic Research, the French national statistics office Insee and the Italian National Statistics Bureau Istat in the quarterly Economic Outlook report predicted that the first quarter of the euro-zone economy shrinking 0.2% in the second quarter will be zero growth.
despite the euro-zone finance ministers agreed last Friday to the euro zone crisis loan the ability to expand to 700 billion euros. But some people worry that this may not be sufficient to avoid the region once again plunged into financial turmoil. Helen Haworth, Credit Suisse’s interest rate strategist, said Friday’s decision on the euro-zone finance ministers may find it difficult to eliminate the financial market doubt the sincerity of euro-zone to help themselves. If the euro-zone economic situation continued to deteriorate, this will be particularly prominent.
However, despite the weak economic growth prospects, inflation is lower than expected but more stubborn. Eurozone consumer prices to reconcile the initial value of the index is higher than on the same period an increase of slightly reduced to 2.6%, but still larger than analysts’ estimates. European Central Bank announced on Wednesday its benchmark interest rate to maintain the existing level of 1% of unchanged.
ferocious invasion of the debt crisis, the European Central Bank to have to interrupt the cycle of raising interest rates have already started and twice cut interest rates.
by the warming influence of investors on the debt prospects doubts, the euro fell on Wednesday the European trading session. 19:10 GMT Thursday, the euro against the dollar at $ 1.3158, down 0.57 percent. The same time period, the stock market fell more than 1 percent in the United Kingdom, Germany and France.