Spain's defense suffers, but retains a place in the Bond league. This morning's auction in Madrid, the first after the request for aid to Europe, closed with the placement of 3,04 billion euro of bonds against a maximum expected of 3 billion.
In detail: 2 billion 12-month bonds at a yield of 5,074%, up sharply from 2,985% in May, and one billion 18-month bonds at a yield of 5,107% compared to 3,302% in May. Meanwhile, on the ten-year front, the Iberian stock comes out of the infernal circle by 7%. The Bono/Bund spread drops by 11 basis points to 555, for a yield that drops below 7%.
The 10-year Btp/Bund spread drops by 10 basis points to 454, for a yield that slips below the psychological threshold of 6%. In short, the dam holds, even if there is no need to be under any illusions: it is almost only the domestic banks that buy Spanish bonds that draw funds from the State which, in turn, will draw them from the European EFSF fund. This vicious circle weighs on Spanish banks: Bankia plummets down 8%, the better bbva (-1,3%) And Santander (-1,6%).
After yesterday's massive losses in Piazza Affari, the FtseMib index marks a rise of 0,74% to 13.106. Madrid also rebounds by 1,31% The Paris Stock Exchange loses 0,08%, Frankfurt +0,45%, London accelerates, up by 0,86%. New disturbing news arrives from Germany: the Constitutional Court ruled that the government did not give sufficient information to Parliament regarding the ESM permanent bailout fund, introducing a new chock to the arduous search for a common solution to the euro crisis. Meanwhile, the Zew index signals a drastic drop in consumer confidence.
The euro is up, trading at 1,260 against the dollar, from 1,257 at last night's close.
In the meantime, expectations are growing for today's and tomorrow's meeting of the Federal Reserve. In Milan, the banks react to the initial discounts: Unicredit -1,8% Understanding -0,8% Banco Popular +0.05%. The situation is still high risk MontePaschi -2,5%: landslide under the Rocca Salimbeni in view of the deadlines imposed by the EBA. They also suffer Popular Milano (-0,36%) And Bper (-0,44%).
Lose positions Mediobanca (-0,48%), goes back Generali (+0,91%). Booming Telecom Italy (+5,65%) despite the official denials of the rumors of Sun 24 Hours on an ongoing negotiation with the Cassa Depositi e Prestiti to invest together in the new telecommunications network.
Oils are positive: Eni advances 0,63%, Saipem of 0,64%, Tenaris by 2,92%, pushed by Exane, which raised the recommendation to performer da neutral.
Sharp decline of Finmeccanica, -2,2%, positive StM, with + 1,04%.
