Spain bond auction meets strong demands; yields on the rise
The Spanish Tesoro sold €2.2 bln in a bond auction today against a target of €2.0 bln. The sale was split into €700 million of two-year notes, €898 million of notes maturing in 2015 and €602 million in 2017 bonds.
The two-year paper was sold at an average yield of 4.706% compared with 2.069% in the last sale in April. Demand was at 4.0 times versus 2.8. The five-year paper was sold at 6.072% yield against 4.96% in May with a bid ratio of 3.4 times compared to 3.1 previously.
The increase in yields reflects that the debt-crisis could spread to new countries apart from Spain, Greece and Cyprus.
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.
