The euro rebounds on news that ECB is buying European bonds

By @ibtimes on

The European Central Bank bought Italian and Spanish 10-year bonds, which supported the bonds to gain value and yields to slip, said two people with knowledge of the trades.

Markets rebounded on the news, especially when fears and concerns dominated the market that the debt crisis is spreading in terms of rising yields, as Italian and Spanish yields climbed to the highest record since founding the once currency Union, while yields in Belgium and Austria are approaching records, which driven the ECB to intervene to calm down market and support the return of confidence.

Yields on 10-year Italian bonds declined by 0.29% to 6.77%, noting that Italian bonds lost 10% this year. In addition, yields on 10-year Spanish bonds fell 0.11% to 6.23%.

Yields on German 10-year bonds surged 0.04% to 1.83%, noting that Germany is expected to sell 6 billion euros of 0.25% debt in an auction today.

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