21 SEP 2010
By Stephen Kirkland ¦ Bloomberg
Irish and Spanish bonds rallied and the euro strengthened after the countries sold debt. Most European stocks rose, U.S. futures fluctuated and rubber climbed to a five-month high.
The extra yield investors demand to hold 10-year Irish bonds over similar maturity German debt narrowed to 3.79 percentage points at 6:26 a.m. in New York, after rising above 4 points for the first time yesterday. The euro appreciated 0.6 percent to $1.3134. The MSCI World Index of stocks in 24 developed nations added 0.2 percent, while futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent. Rubber futures climbed as much as 3.2 percent.
Investors drove Irish yields higher yesterday on concern that the cost of shoring up the country’s banks will hurt efforts to tame the European Union’s biggest deficit. Spain issued 7 billion euros of bills, the maximum target for the auction. The U.S. Federal Reserve meets today to discuss its interest-rate policy.
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