The Spanish government would have already exceeded its debt auction needs by some €52 billion. BNP Paribas said in a note on Thursday that, even if the Spanish Treasury may yet sell short term paper before the year ends, the €186.13 billion gross issuance target stated in the 2012 general budget has now been surpassed. The excess was €49.9 billion before today’s auction.
Spain had to cover a 3.1 percent public deficit per nominal GDP this year, which was updated to 4.5 percent after negotiations with the European Commission. Total gross issuance had to reach €199.5 billion, but the government had placed €200.9 billion of sovereign debt as of Wednesday. “The deficit deviation,” BNP Paribas analysts explained, “has effectively been covered.”