Spain’s debt yields broke above the 6% mark today, damaging the Euro and sending German bonds to their highest level since the Euro crisis began.
Fears are growing that Spain is going to need another bailout despite the European central bank pumping a trillion Euros into the European economy.
“We’re back in full crisis mode,” Rabobank strategist Lyn Graham-Taylor said.
“It is looking more and more likely that Spain is going to have some form of a bailout.”
The Spanish treasury responded by saying that it will attempt to raise up to 5.5billion in debt by the end of this week.
Elsewhere newly released trade figures offered a nice surprise for the embattled Eurozone. The Euro stat report shows that those economies posted a surplus in trade of up to €2.8bn in February compared to the deficit of €2.8bn at the same point last year.
The improvement is thought to have been made possible thanks to an 11% increase in Eurozone exports and a 7% reduction in imports.
The top three countries showing a strong surplus are Germany, The Netherlands and surprisingly Ireland. The worst performer was the UK with a deficit of -€11.6bn. The data confirms that Germany is the continuing powerhouse of the Eurozone with the largest surplus of an impressive €13.1bn.
All eyes continue to be on Spain and its financial difficulties which posted a trade deficit of €-3.6bn. The European Commission president Jose Manuel Barroso said earlier today that he was “absolutely confident that Spain can meet its economic challenges”.
Sterling rose to €1.2182, its highest level since September 2010. That means one euro is worth 82.09p.
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