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.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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