France’s Auction Shows Higher Yield Required - 5.1.2012

The euro slid lower against its major counterparts, touching new multi-month lows against the dollar and new multi-year lows against the Japanese yen, after France held its first debt auction in 2012. The nation’s treasury raised a total of 7.96 billion euros in bonds maturing in 2021, 2023, 2035 and 2041. The yield of the benchmark 10-year securities advanced to an average of 3.29%, compared with 3.18% at a December auction, while the bid-to-cover ratio decreased to 1.64 from 3.05 indicating lower demand and higher required yield. The euro fell below 99.00 against the yen and below 1.2830 against the greenback. Other risk-sensitive currencies like the Aussie and the Loonie weakened against the dollar as well. The dollar index surged to a one-week high 80.67.