The tax is based on an idea put forward by the economist James Tobin over forty years ago and its current application is aimed at controlling banks and speculative activities, such as high frequency operations, as each agreement will be taxed.
Spanish borrowing costs fall sharply at auction
The Spanish Tesoro Público held a debt auction on Tuesday during which it sold 2.9 billion euros worth of 3- and 6- month bonds.
1.206 billion euros of 3-month bonds were auctioned at an average yield of 0.441%, compared with 1.195% seen at the previous auction. 1.578 billion euros worth of 6-month bonds, were sold at an average yield of 0.888% versus the previous 1.609%.
Following the auction Spanish risk premium remained at the level of 355 points.
Ireland and Portugal ask Eurogroup for repayment extension on aid
Ireland and Portugal are seeking better conditions on the repayment of the received aid. The aim is to extend the payment of maturities further down the road.
Ireland's finance minister is looking for such an option in order to ease the country's near-term burden and accelerate the return to normal borrowing conditions in the financial markets, after being locked out of them back in September of 2010.
As Reuters notes: "Ireland's Michael Noonan told journalists he and his Portuguese peer had presented a joint request for an extension of the maturity of the loans from the European Financial Stability Facility."
Reuters adds, quoting Noonan: "We arranged a way of presenting a joint request. If you had a term loan to build an extension to your house and you were able to convert it into a mortgage which you will extend over a long period, you can see that your repayment profile will come down. It has been referred to a group of officials to examine it."
Jean-Claude Juncker, the outgoing president of the Eurogroup, is thought to examine the request in the case of Portugal.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.