With crucial elections in Greece being less than three days away and periphery yields having spiked substantially to the upside since Spain agreed to outside help for their troubled banking sector last weekend, many would consider the current environment anything than ideal to stage bond auctions.

The auctions are manageable but investors in return for their trust will certainly be demanding an extra premium in form of higher yields once more .

General activity is expected to be moderate at best with many preferring to stay on the sidelines until the situation in Greece and their ‘indirect referendum’ on remaining in the Euro has been decided or at least become somewhat clearer.

Markus Huber - Head of German HNW Trading - ETX Capital
www.etxcapital.com