Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Interest rates up following Spain bond auction

 

Ciaran Giles
Thursday 02 August 2012 11:51 BST
Comments

Spain successfully sold 3.1 billion euros in medium-and long-term bonds today but at a sharply higher cost, another sign that the country is struggling to convince sceptical investors that it won't need a bailout.

The auction came hours ahead of a European Central Bank meeting at which Spain hopes some measures might be announced that might ease the pressure on its borrowing costs.

The Treasury sold 1.04 billion euro in 10-year bonds at an average interest rate of 6.65 per cent, up from 6.4 per cent in the last such auction July 5. Spain's 10-year bonds have been fetching similar yields on the secondary market for several months now.

The Treasury also auctioned 1.02 billion euro in four-year bonds at a rate of 5.97 per cent, up from 5.54 per cent. It also sold 1.06 billion euro in two-year bonds on a yield of 4.77 per cent.

One good sign was that demand was more than double the amount offered in the four- and 10-year bond sales and nearly three times the amount in the two-year sale.

Spain is in its second recession in three years with an unemployment rate of nearly 25 per cent.

AP

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in