Spanish Treasury: yields still falling despite scuffle with Brussels

By Tania Suárez, in Madrid | The new deficit targets established by Brussels left unmoved the Spanish Treasury issuance performance. It has placed €3,009.29 million in bonds and debentures at lower interests, few days after the Spanish government set up a higher deficit target for 201 and after Brussels mended it to a final 5.3% from an initial 4.4%.

Specifically, the Treasury has placed €976.18 million of the €4,031.18 million demanded by investors in bonds with a 3.25% coupon maturing by 2016. The average interest rate has fallen to 3.374% from 3.748%, while the marginal interest has gone from 3.883% to 3.428%. It has also sold €1,003.65 million of the 4,975.67 million demanded by the markets in debentures with a 4.40% coupon maturing in 2015. The average interest has been 2.440% versus the previous 2.966%, whereas the marginal rate has dropped to 2.518% from 3.126%.

Finally, the Spanish agency sold €1,029.46 million of the €2,994.61 million demanded, in debentures with a 4.10% coupon maturing next 2018. In this case, the average interest has been 4.193%, while the marginal has reached 4.242%.

It seems the Spanish Treasury keeps reducing the interests, a trend first marked last December. And even amid all the markets turmoil, it hangs on.