hotfire's - money is made friday, page-32

The Bond auctions last night did not go well. Spain's are at euro era highs.

Spain sold 3.56 billion euros ($4.8 billion) of a new 10-year benchmark at an average yield of almost 7 percent, the most since the euro’s creation, as demand for the securities dropped.

The Madrid-based Treasury said it sold the bond due in January 2022 at an average yield of 6.975 percent, compared with 6.69 percent for similar securities on the secondary market before the auction and 5.433 percent when it sold bonds due in April 2021 last month. The bank had set a maximum target of 4 billion euros for today’s sale.

French and Italian yields also climbed until the Ecb stepped in and started buying.

US economic data was good again but it was a total risk-off trade today with an across-the-board sell off in commodities. Copper and crude oil each fell more than 3%. Corn fell 4%. Even gold, the on-again off-again safe haven, got dumped, falling 3%.

http://www.businessweek.com/news/2011-11-17/spain-pays-almost-7-to-sell-10-year-bonds-as-demand-drops.html