Arab Today, arab today spain pays higher rates in crucial bond issue
Last Updated : GMT 12:57:34
Arab Today, arab today
Arab Today, arab today

Spain pays higher rates in crucial bond issue

Arab Today, arab today

Arab Today, arab today Spain pays higher rates in crucial bond issue

Madrid - AFP

Spain endured a test of fire on the bond markets on Thursday, raising 3.3 billion euros ($4.7 billion) but paying a hefty rate in the midst of a growing eurozone debt crisis. Refusing to back out despite the risk premium on Spanish debt soaring to a euro-era record on the eve of the bond auction, Spain proved it can still borrow on the markets. But the price was high.Spain sold 2.2 billion euros in three-year bonds. But the yield, or annual return offered to buyers, surged to 4.813 percent from 4.037 percent at the previous comparable auction June 2, the Bank of Spain said.The state also sold 1.1 billion euros in four-year bonds for a yield that shot to 4.984 percent from the 2.862 percent offered at the previous comparable auction in October 2009.Higher rates had been expected after the risk premium on Spanish 10-year bonds over safe-bet German bonds peaked Wednesday at 407 basis points -- the highest since the introduction of the euro in 1999.Finance Minister Elena Salgado held a crisis meeting on the eve of the bond issue with Prime Minister Jose Luis Rodriguez Zapatero to grapple with the market turmoil that has targetted Spain and Italy\'s debt.Afterwards, she said Spain\'s government had covered two-thirds of its financing needs for this year but said it was \"good to show again Spain\'s capacity to go to the markets.\" The high rates on offer lured investors, with requests for the bonds amounting to 7.4 billion euros, outstripping supply by more than two to one, the Bank of Spain said.But, according to the daily El Mundo, the Treasury also ensured success by striking agreements with 22 financial institutions under which each would buy three percent of the issue, thus guaranteeing it would sell two-thirds of the offer.\"Yes, we are managing to finance ourselves but the cost is very high,\" said Ivan San Felix, financial analyst at Spanish brokerage Renta 4.\"Investors are taking part, that inspires confidence, but the costs have to come down.\" The eurozone debt crisis has already claimed Greece, Ireland and Portugal, forcing them to seek bailouts from the European Union and International Monetary Fund.There are growing fears that Italy and Spain, the eurozone\'s third- and fourth-biggest economies, could be next in line, developments that would dwarf previous bailouts and could undermine the euro itself.Spain says it should not be lumped together with the three lame ducks now under EU and IMF rescue programmes.Madrid argues it has pursued tough reforms including raising the retirement age, relaxing collective bargaining rules, making it easier to hire and fire employees, cutting civil servant wages, forcing banks to bolster their balance sheets and placing assets such as the national lottery on the block for sale.Pressure mounted for the European Central Bank to calm the storm by at least signalling a willingness to buy Spain and Italy\'s sovereign bonds on the debt market.\"As long as the ECB stays on the sidelines, a speculative, fear-driven withdrawal of market funding can feed a self-fulfilling insolvency for either or both sovereigns,\" Citi Economics analyst Willem Buiter said in a report.\"It follows, in our view, that the ECB will have to come in or accept a couple of fundamentally unwarranted large sovereign defaults and the biggest banking crisis since 1931.\"

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain pays higher rates in crucial bond issue Arab Today, arab today spain pays higher rates in crucial bond issue

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday