Spanish bond worries ease - for now.

Spain's bond rates dropped after Mario Draghi (Pres, ECB) declared that the ECB will do what it takes to save the Euro. Spain was able to raise E5.6B at the latest auction; 12 month bonds pay 3.070 and 18 month bonds pay 3.335%.

Will this continue? Will the ECB do the bond buying while the Bundesbank complains? Did Draghi bluff?

We won't know untill October when Spain auctions E9.04B in long term and E24.16B in short term bonds.

Meanwhile, the US Dollar dropped below 82 and gold surged to 1,640/oz. The Markets are betting that the ECB will ease.