Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Spanish treasury gets bond auction boost

Share this article

13:46 CEST+02:00
Spain raised €4.3 billion ($5.5 billion) of medium and long-term bonds Thursday, more than it had targeted, at lower interest rates, despite market concerns over the financial crisis in Cyprus and the political stalemate in Italy.

The Treasury had expected to raise €3.0–4.0 billion via the bond auctions, and demand outstripped supply by over two to one.

The Treasury sold €589.9 million of five-year bonds at an average yield of 3.598 percent, down from 4.193 percent at the last similar auction held on March 15th, 2012, the Bank of Spain said in a statement.

It sold €660.5 million in eight-year bonds at an average yield of 4.477 percent, down from 5.517 percent from the last similar auction held on November 22nd.

The Treasury also raised €3.06 billion in three-year bonds at an average yield of 3.019 percent.

This auction was not comparable to previous sales of three-year-bonds since it had a fixed coupon of 3.3 percent instead of a coupon of 3.75 percent in the previous operations.

The risk premium or spread — the extra rate demanded by investors in Spanish 10-year bonds over the rate offered by equivalent German bonds — stood at 354 basis points shortly after the bond auction, down from 363 basis points when markets opened on Thursday.

Get notified about breaking news on The Local

Share this article

Advertisement
Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement