Jun 16, 2010
Euro Zone Rescue of Spain Not Needed
There will be no rescue for Spain. This came from European policy makers that made a statement that rejected talks for a rescue for Spain as that country’s borrowing costs grew further.
Jean Claud juncker, the chairman of the eurozone finance ministers said that the market should not equate Greece with Spain. Spain recently paid a mugh higher average yield for the T-Bills that it auctioned out this week after news emerged that Spanish banks were being shrugged off in international credit markets.
The market rallied after that auction by Spain which gave some reassurances to the market in general that it will be able to meet debt obligations that arrive at the end of July.
In other news, Moody’s Investor Service shocked everyone by downgrading Greece’s debt into junk status which may send the country even deeper into trouble and may force people to sell billions worth of Greek government bonds.