Chillin' out till it needs to be funded
EUR 21 bln of Sovereign bonds with EUR 12.5 bln already committed today and the rest coming next week and European PPI was more than a mite uncomfortable at a high 3.7% Y/Y driven by Oil even as demand goes down and 0.7% M?M., German retail sales contracting despite the Y/Y uptick. Apparently though France walked away with EUR 8 bln at today’s auctions at a definitely more comfortable 2.5 Bid Cover, Spain did not try for much with EUR 4.5 bln.
Spain apparently tried to score points with Growth gurus like us and Krugman and stoutly opposed the ECB just minutes ago, publishing a new 2012 budget target for a 5.8% deficit target in 2012. One can just hope they do not need the Budget Commisioners to approve another bailout.