Ten- year Spanish Treasury bonds dropped slightly in Thursday’s auction, offering a yield of 1.616%, down from last week´s figure of 1.1840%. The figures reflect the sense that markets are unconcerned about the possible spillover that events in Greece may have in other peripheral countries such as Spain.
Spanish ten-year bonds traded at an all time low in January, boosting the perception that Spanish Treasury bills now represent a safe long-term investment.
On the big picture, figures published yesterday showed Spanish exports expanded by 2.5%, albeit with the country´s trade deficit posting a simultaneous rise of 53%. That was down to a 5.7% rise in imports, a figure the Government was keen to stress was a sign of recovery in consumer spending power and confidence.