The euro has edged higher but has come off its best levels after Spain had to pay higher costs in its latest bond auctions, which raised €2.4bn.
There was reasonable demand for the 10-year and 15-year bonds, covered 1.7 times and 2.5 times respectively. But the yield for the 10-year gilt rose from 4.615% at the last auction to 5.446%, and on the 15-year bond from 4.541% to 5.953%. There have been growing concerns that Spain could be the next European country to need a bailout, with Moody's yesterday warning it downgrade its credit rating.
Meanwhile as European ministers meet to discuss their latest response to the financial crisis, the euro has edged up 0.2% to $1.342, having touched $1.3265.
