Spain keeps on reducing the price on its debt

MADRID | Since December, the Spanish Treasury has had a series of successive successes in its debt offers, even exceeding their expectations in many of them. On Thursday, it happened again. The agency under the ministry of Economy and Competitiveness placed €4,560 million in bonds, the maximum planned, at more moderate rates than on the previous occasion according to data released by the Bank of Spain.

Specifically, the Treasury placed €2,522 million in bonds with a 4.00% coupon and a maturity on 30 July 2015. In this case, the average rate was 2.861% as opposed to the 3.384% of the previous issue.

It also issued €984 million in bonds with a 4.25% coupon and a maturity on 31 October 2016. The average interest rate dropped from last auction’s 4.021% to 3.445%.

Finally, the Treasury sold €1,054 million in bonds with a 3.80% coupon and a maturity on 31 January 2017. In this case, the average rate went from 5.544% to 3.565%.

This time the markets were much calmer and also contributed to the auction. The risk premium reached 299 basis points on Wednesday, the lowest mark in the last fifteen months, but at the opening on Thursday it was at about 308.