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 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...