Periphery Debt Concerns subside after Spain’s successful bond auction
A Spanish bond auction attracted good demand on Thursday. Spanish Treasury sold €3.4 billion of its 5-year bonds with a slight increase in yields. The auction is seen as encouraging for the country as investors perceive it to be in better shape in regards to its debt management than other struggling nations on the euro zone periphery, especially neighbour Portugal. However, there was still evidence that Spain is still under pressure as it paid more to attract investors than at an auction held 2 months ago.
The average yield was up to 4.549 percent from 4.389 percent 2 months ago. Its bid-to-cover ratio was at 1.9 versus 2.2 from the previous auction.
RTFX Ltd (“RTFX”) is licensed to conduct investment services business by the Malta Financial Services Authority. This information does not constitute an offer or solicitation and is provided for information purposes only. This information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of RTFX at the time of preparation. They are thus subject to change without notice. RTFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by RTFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by RTFX or any director, officer or employee.
