Political and Economic Uncertainty in Spain Force More Borrowing at Triple-Bond Auction

by Colonel on February 7, 2013

“Political uncertainty over a corruption scandal and revived concerns over the economic health of the euro zone forced the Spanish Treasury to pay more to borrow at a triple-bond auction on Thursday.

Demand was strong, however, and yields remained well away from crisis levels.

Spain sold 1.948 billion euros ($2.6 billion) in a 2015 bond, with the yield rising to 2.823 percent, up from 2.476 percent at the last sale of that paper, in January. Yields also rose on a 2018 bond and a 2029 bond that were sold at the auction.

In all, it sold 4.6 billion euros worth of the three bonds, slightly higher than the top end of its target range. Demand was strong, continuing the trend from January when Spain saw yields on shorter-term paper falling to ten-month lows.

It means that Spain had now sold over 18 percent of its full-year medium- and long-term funding target.

” — (Additional reporting by William James in London; Editing by Fiona Ortiz/Jeremy Gaunt), Copyright 2013 Thomson Reuters

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