Today Spain issued €1.403 M at a new auction of bonds and securities, within the average range predicted. And it did so selling the 10-year bond with a negative yield for the first time in history. In fact, in the secondary market, the Spanish bond has been marking historical minimums for weeks. Until now, this “anomaly” was something typical of countries like Germany, with well balanced public accounts. Spain and Portugal have already joined this club. The Portuguese bond yield fell to -0.013% on Tuesday.
Spanish debt auction
The Spanish Treasury sold €2.102 billion worth of bonds at its last auction of the year, meeting its issuance target for 2015 of €139 billion. Its average issuing period in 2015 was 9.1 years, not seen since 2010, and it paid an average yield of 0.87%. This has meant that the average cost of debt in circulation has fallen to a record low of 3.16%.
MADRID | Europa Press | The Spanish Treasury managed to successfully close the first auction of the year by placing almost €10bn in bonds, twice the expected amount and at lower than expected rates, thus continuing the good streak of the previous issuances. The agency’s expectations were far exceeded by the result as in the last auction. It had only expected to obtain between €4bn and €5bn. The demand was again…