• Italy’s auction of 2 year bonds and six month bills today went much better than its previous effort. The 2 yr came at 4.85% and the bills at 3.25% after dreadful auctions a month ago. Demand was better than expected. Yields on Italian bonds in the secondary market improved after the results. From The Financial Times.
• Euro-area bank deposits at the ECB hit another high yesterday indicating that there is still severe stress in the interbank lending market. From the Wall Street Journal.
• Iranian officials commented today on state television that closing the Strait of Hormuz would be very easy. Iran threatened to retaliate against a possible embargo on the nations oil by European nations by closing the strait. Tension continues to build as Iran press on with its nuclear program. From Reuters News.