Spain enjoys successful bond sale after tough week
Thursday 07 June 2012
successfully raised 2.1 billion euros (£1.7bn) today from
the bond markets — but at higher interest rates as investors remained
concerned the country might still need external help to shore up its
troubled banking sector.
The Treasury paid an average interest rate of 6 per cent to sell 611 million euros in key 10-year bonds, up from 5.7 per cent in the last
such auction on 19 April. The rate is still lower than the 6.1 per cent being demanded on the secondary market, where issued bonds are traded openly and the rate is seen as an indicator of investor wariness.
The interest rate — or yield — demanded by investors has soared in recent weeks to as high as 6.7 per cent on fears over the country's creditworthiness. A rate of 7 per cent is considered by market-watchers as unsustainable over the long term — and the point at which Greece, Ireland and Portugal had asked for a bailout.
The successful sale came just days after Spain made its most explicit signal that it needs help from Europe for its struggling banks while Finance Minister Cristobal Montoro warned that the high risk premium of recent weeks indicated "the door to the markets is not open for Spain."
- 1 What if 35 Palestinians had died, and 800 Israelis?
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...
£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...
Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...