Uncertainty and concern loom over Spain

The Spanish bond debt auction was a key focus point in the markets today. Spanish concerns remain though and the Euro lost some ground. The Yen was lower on the day, after the Bank of Japan (BoJ) announced a commitment to monetary easing.
The Euro retreated today from a session high against the Dollar. Spain had auctioned its 2 and 10 year bonds with good bid to cover ratios however, the auction failed to alleviate concerns about Spain's long term fiscal outlook.
The auction was seen as a test of investor confidence in troubled peripheral debt markets, after worries persist about the sustainability of Spain's public finances.
Spain sold more than its maximum target at the debt sale. 2.54 billion Euros of 2 year and 10 year bonds were sold, compared with a maximum target of 2.5 billion Euros.
Demand for the 10 year debt was 2.42 times the amount sold. This was higher when compared with 2.17 at the sale on 19th of January.
Spanish 10-year bond yields had jumped above 6% earlier in days leading up to the auction and there were, and remain, concerns that Spain will pay dearly for raising longer term debt.
The Euro edged higher against the Dollar ahead of the bond sale, but soon pared gains to trade almost flat on the day at $1.3129.
Many analysts are of the view that any escalation of concerns about Spain's high level of debt, at a time when the economy is considered as faltering, will put the Euro back under pressure.
The Euro has been under pressure against riskier currencies. In particularly Sterling and the Swedish crown. These currencies have been buoyed after less dovish central bank statements from the Bank of England and Riksbank yesterday.
Many analysts do expect that the Euro will trade lower against the Dollar in the medium term. They cited reasons as being the risks that budget and debt problems in Spain will worsen and uncertainty over the outcome of the French presidential election.