The Greek bond buyback is set to end today at 12:00 GMT, and according to one Greek official, the country is very close to meeting its 30 billion Euro target. The buyback was part of a number of measures that Greece agreed upon in order to lower its debt to GDP level to 124% by 2020. This Thursday, while considering the success of the buyback, Euro-zone finance ministers will discuss giving over to Greece the next aid tranche of 34.4 billion Euros. Greek 10-year bond yields fell another 12 basis points in today’s trading, and is currently trading around 13.12%.
Additionally, the Greek government raised 4.2 billion Euros today in a sale of 4-week and 26-week bills. The 4-week bill was sold for 3.99%. In Spain, the government raised 3.89 billion Euros in a sale of 18-month and 12-month bills, versus a 3.5 billion Euro target. The 18-month bill was sold for an average 2.78% yield, versus 3.03% in November.
Besides for the Greek buyback, it’s a relatively quiet day today. Tomorrow, European ministers will continue discussions over the single bank supervisor and the Fed will make a rate decision in the first part of the North American session.
In economic releases, the German ZEW survey for economic sentiment was positive for the first time in six months. ZEW said that economists surveyed said that they expect a stabilization or bottoming out in the German economy by summer of 2013. The survey shows some doubts for the lower Bundesbank lower forecasts, but German Economy Minister Rosler said today that GDP growth will decline further in Q4.
The ZEW survey pushed the Euro slightly higher towards 1.2975 against the US Dollar, where it set a new high for today’s session. EURUSD is now trading around 1.2960, about 20 points above the open. Resistance could come in by the key 1.3000 figure, and support could be provided at 1.2956, by the 61.8% retracement of the fall from October’s high to November’s low.
EURUSD Daily: December 11, 2012
--- Written by Benjamin Spier, DailyFX Research