Futures Market News
Italian bond auction drives euro higher but concerns spread for lingering debt crisis
Apr 12, 2012 08:43 AM
Borrowing costs increasing in Italy after the nation's treasury conducted a bond auction contributed to the shared currency of the European Union rising to its highest value in seven days on Thursday against the U.S. dollar, Reuters reports.
But worries are still spreading about the sovereign debt scourge's talons sinking into other nations. The debt crisis has been attacking banks, markets and public finance systems in the euro zone for more than two years. Tranches of bailout aid have been awarded to Ireland, Portugal and, on two occasions, Greece.
"The response to the Italian bond auction and the performance of Spanish banks is an indication that problems for the euro are piling up," head of Absolute Returns and Currency Stuart Frost with RWC Capital told Reuters.
Spanish Prime Minister Mariano Rajoy, in response to being on the receiving end of blame by Italian leaders regarding the increase in borrowing costs since he scrapped the 2012 budget deficit target, suggested his European peers exercise more care and caution when placing blame.
The Italian bond auction saw the treasury sell the equivalent of more than $6.57 billion-worth of debt, Dow Jones Newswires reports.
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