TraderWise

Yesterday, the market pulled back on credit concerns in Europe. The move was rather subdued and the decline felt more like a retracement from an extremely overbought condition. The market rallied almost 5% in three days last week and it was overextended. Ireland and Greece are in the spotlight and the threat of a sovereign default has resurfaced. Portugal came to market with three-year and eight-year bonds. The yields climbed and the bid to cover decreased from June's level. We know that if the yield is sufficiently high, the auctions will attract buyers.