Spain auctioned bonds due in 2016 at an average yield of 4.023pc, compared with 5.276pc when securities of a similar maturity were offered on December 1, the Treasury said. It priced bonds due in 2020 at 5.239pc, compared with 5.006pc in September, and sold an April 2021 bond, the current 10-year benchmark, at 5.545pc, less than the 5.696pc on the secondary market before the auction. After the auction, Spanish bonds erased declines. The yield on the five-year benchmark fell 27 basis points to 4.69pc with the 10-year yield declining 16 basis points to 5.53pc, the lowest in more than a week. That narrowed the gap with German equivalents to 359 basis points from as high as 382 basis points before the sale. The auction marked the second time in a week that Spain managed to sell more bonds than targeted, easing concern that the spread of the region’s debt crisis would make it harder to finance the country’s rising debt. Prime Minister-elect Mariano Rajoy pledged “important decisions” next week at his first Cabinet meeting to tame public finances and end the country’s three-year economic slump. Demand for the 10-year bond was 2.16 the amount sold, compared with 1.76 in October, while investors offered 1.99 times the amount of the four-year bonds sold, compared with 2.83 on December 1, and the bid-to-cover for the April 2020 notes was 1.52 compared with 2.01 times in September.
Access Investments-Building Awareness - European Union-ROMANIA
Thursday, December 15, 2011
So,....The ECB is buying...
Spain auctioned bonds due in 2016 at an average yield of 4.023pc, compared with 5.276pc when securities of a similar maturity were offered on December 1, the Treasury said. It priced bonds due in 2020 at 5.239pc, compared with 5.006pc in September, and sold an April 2021 bond, the current 10-year benchmark, at 5.545pc, less than the 5.696pc on the secondary market before the auction. After the auction, Spanish bonds erased declines. The yield on the five-year benchmark fell 27 basis points to 4.69pc with the 10-year yield declining 16 basis points to 5.53pc, the lowest in more than a week. That narrowed the gap with German equivalents to 359 basis points from as high as 382 basis points before the sale. The auction marked the second time in a week that Spain managed to sell more bonds than targeted, easing concern that the spread of the region’s debt crisis would make it harder to finance the country’s rising debt. Prime Minister-elect Mariano Rajoy pledged “important decisions” next week at his first Cabinet meeting to tame public finances and end the country’s three-year economic slump. Demand for the 10-year bond was 2.16 the amount sold, compared with 1.76 in October, while investors offered 1.99 times the amount of the four-year bonds sold, compared with 2.83 on December 1, and the bid-to-cover for the April 2020 notes was 1.52 compared with 2.01 times in September.
Subscribe to:
Post Comments (Atom)
1 comment:
It is like an alcoholic saying that 'I need to get a bottle tonight. Starting tomorrow I will be clean and abide by the rules, but I need the bottle tonight'. I don't think it is sensible to give the alcoholic the bottle. He won't have an incentive to solve the problem.
13.33 Looking ahead to the US market opening, the futures market is expecting shares on Wall Street to trade higher: the Dow Jones is expected to open up 0.6pc at 11,833 points, and the S&P 500 to climb 0.7pc.
13.25 But what's this? Backing, of sorts, for Mr Noyer's assertion? According to regularly updated research by Euromoney, economists consider the UK to be riskier than any of the eurozone's AAA-rated countries:
Post a Comment