STOCK MARKET WATCH -- Thursday, 15 November 2012

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7. Spanish Notes Fall for Second Day as Europe Enters Recession

http://www.bloomberg.com/news/2012-11-15/germany-s-10-year-bunds-rise-as-growth-slows-in-third-quarter.html

Spanish two-year notes dropped for a second day after a euro-area report showed the region’s economy slipped into recession in the third quarter.

Two-year yields climbed toward the highest level in five weeks after Spanish data indicated gross domestic product shrank for a fifth quarter. French bonds were little changed after the nation auctioned 7.5 billion euros ($9.6 billion) of notes, including two- and five-year securities at record-low yields.

“The Spanish data has been quite horrible and Spain is not an economy producing a positive surprise,” said Elwin de Groot, a senior market economist at Rabobank Nederland in Utrecht.

Spain’s two-year yield rose three basis points, or 0.03 percentage point, to 3.27 percent at 10:28 a.m. London time. The 3.3 percent note due in October 2014 fell 0.055, or 55 euro cents per 1,000-euro face amount, to 100.06. The rate climbed to 3.29 percent on Nov. 13, the highest since Oct. 12.