Spain Auctions EUR3.75 Billion In Treasury Bonds At Above 5%
By KUNA
The Spanish Treasury conducted successfully on Thursday an auction of bonds amounting in value to EUR 3.75 billion at an interest rate above five percent, the highest rate since 2000.
The move which is similar to two auctions conducted in November, includes government bonds valued at 1.2 billion Euros, payable in three years, with interest rate of 5.2 percent.
The auction also includes EUR 1.15 billion bonds, payable in four years, with interest rate of 5.28 percent, and EUR 1.4 billion bonds, payable in five years with 5.56 percent interest rate – the highest since 1997.
Local economists hailed the demand-driven auction, saying it yielded EUR 10.2 billion which will help tackle Spain’s debt crisis.
The yields will back up the stimulus package reached recently by six of the world’s leading banks, including the European Central Bank and the US Federal Reserve, to provide the liquidity necessary for selling Spain’s sovereign debts, they believe.
