Bonds: Spanish messages turned the picture

Bond dealers were almost gone for the weekend before Friday's trade. In any case, there were close to absolute rest on a trading day, which was marked by cautious buying almost across the board.

This resulted in a slight decline in interest rates in both South and North Europe most of the day, but new reports that Spain has not intend to seek official help for its pressed banking sector reversed the picture in Spain and Italy, which ended with small increases in interest rates.

Europe: Kept momentum in Spanish redemption

The European market Wednesday insisted its upward momentum after a long-awaited report from Moody's on Spain did not contain the expected downgrade of its credit rating. At the same time a string of positive news for several large European companies sent mood firmly upwards.

Bonds: Interest rate increase after job report

Bond yields in Northern Europe was Friday sent up by surprisingly good U.S. job figures, which were as expected in September but contained upward revisions of the previous two months' figures. It sent investors to back the tables to turn up the knob that controls the "risk-on". This gave rise in stock markets, rising interest rates in the safe countries and declining yields in riskier countries from southern Europe.

Currency: Euro strengthened on ECB comments

The European Central Bank on Thursday kept the benchmark interest rate on the main refinancing operations at 0.75 percent. This was not a surprise from the ECB as the only few individual analysts and economists had expected a reduction in European interest rates.

Bonds: The Spanish problems pours in

The yield spread between South and North Europe widened considerably Wednesday, when there were major decline in interest rates in Northern Europe and significant increases in Southern Europe and especially Spain.

Bonds: Europe in small side steps

European bond yields Thursday painted a picture of a somewhat indecisive market after a number of key areas such as European consumer confidence and U.S. business outlook index from Philadelphia Fed more or less equalized Wednesday’s fluctuations.

Bonds: Falling interest rates in both the north and south

A fall in the European stock markets Tuesday had investors seeking back in the safe haven in the bond market.