Euro goes down, bonds and debt go up
Euro has been driven down on the forex market by the failed negotiations of EU’s finance ministers. Italian bonds are losing value as well.
The currency has tumbled down in most of Group of Ten trading pairs. The euro has gone down by 0.6% and ended up at US$1.0830.
At the same time benchmark debt yields in Italy have gone up to the highest level in three weeks. Italy is considered to be the most impacted of the European economies. German bunds, that have a reputation of a safe haven, have rallied after the meeting of ministers.
Markets on the continent have been waiting for the relief package from the authorities worth around half a trillion EUR. However, the course of action has not yet been approved. Italy, France and Spain are supporting the spending project, while Finland, the Netherlands, Austria and Germany are opposing it.