The market is tensed eyeing the bond auctions in Spain and France today after the demand declined in the auction on Italian bonds which saw yield surge on rising market pressure.
Spain is ready to action as much as 4.0 billion euros of bonds with maturity in 2019 and 2020. France on the other hand will offer securities with 2013, 2014 and 2016 maturities and also to issue inflation-linked bonds with maturities in 2019 and 2022.
Investors will assess the demand on the bonds today and the yield to be demanded as the fiscal pressure is on the rise on both nations and market pressures have intensified recently with renewed risk of Greek default. Nevertheless, the tension somehow eased after supportive comments from Merkel and Sarkozy to Greece and Italy's bond auction where it sold 3.9 billion euros of 5-year bonds earlier this week.