A 2014 bond auction in France went off at 0.54% this Thursday, while the same maturity in 2014 went for a yield of 4.70% in Spain.  The fear is that long-term borrowing rates will breach that 7% mark (or worse).  Now that the Greek situation is resolved for another few weeks or so, this bond auction will matter for many of the PIIGS and the ETFs and ADRs which track these.

What is interesting is that Spanish equity markets are up.  Maybe the real takeaway is that even if the Spaniards are having to pay up they are still able to borrow.  The criteria of ‘good news’ may be changing again.  The IBEX 35 was up 1.4% at 6,892.80 on last look and that has the indication for the iShares MSCI Spain Index (AMEX: EWP) looking a tad higher today after gains on Wednesday. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is actually indicated higher and Banco Santander, S.A. (NYSE: SAN) is actually up 2% at $6.40 in New York ADR trading.

The National Bank of Greece SA (NYSE: NBG) was indicated down about 2% at $1.78 despite the Athex Composite Share Price Index trading down 0.2%. The ADRs for Bank of Ireland (NYSE: IRE) are down about 1% in early indications with shares down 1% at the local exchange.

And as far as the larger European banks, the ADRs for Deutsche Bank AG (NYSE: DB) are indicated up 1.5% at $37.30 in New York early trading indications.

JON C. OGG