Crunch day for credit markets

ECB liquidity measures to stay into 2011, its president said today, as Spain and Italy look to raise €11bn through Treasury auctions

Europe’s battered sovereign bond markets were today looking to the European Central Bank for crucial support on a key day for sentiment, with Spain and Italy launching €11bn bond auctions as ECB president Jean-Claude Trichet said special liquidity measures for commercial banks would remain in place for the first three months of 2011.

The European Financial Stability Facility is also on a roadshow in Asia in preparation for its inaugural bond issue.

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