spanish bond yields fall after moody\s rating
Last Updated : GMT 06:04:03
Arab Today, arab today
Arab Today, arab today

Spanish bond yields fall after Moody\'s rating

Arab Today, arab today

Arab Today, arab today Spanish bond yields fall after Moody\'s rating

London - AFP

The cost of borrowing for Spain fell on the traded bond market early on Wednesday with tension easing in response to a decision by Moody\'s rating agency not to downgrade Spanish debt to junk status. The rate, or yield, on Spanish 10-year debt fell to 5.588 percent on the secondary market from 5.805 percent late on Tuesday shortly before the Moody\'s decision. Moody\'s maintained its notation for Spanish debt at \"Baa3\". The decision by Moody\'s had been awaited with great interest on the sovereign debt market. Spain is considered to be on the verge of requesting bailout help in some form from the European Union, with some leading EU voices saying it should seek help now while others argue that it might be able to avoid a rescue. This is a top item on the agenda for a two-day EU summit opening on Thursday. The decision by Moody\'s means that the overall rating status for Spain enables Spanish debt to be held by investors who are not permitted by their contracts with savers to hold bonds below investment grade. A further downgrade by Moody\'s would have put Spanish debt into so-called junk status, and many investors would have been obliged to sell. But Spain remains at risk. Moody\'s, like rating agency Standard & Poor\'s, has conditioned its rating with a \"negative outlook\", meaning that the notation could be downgraded in the medium term. When a government borrows money by issuing bonds to bridge an annual budget deficit, it has to offer investors an interest rate in line with the perceptions of the risk to savers of lending. The bond is issued to offer a fixed amount of money each year in the form of interest for the life of the bond. This fixed amount, relative to the amount lent, gives a percentage return or interest or yield. Once issued, the bonds are traded on the secondary market. Since the annual amount paid out is fixed in cash terms, the only variable to reflect changing perceptions of risk attached to the loan is the value of the bond. If perceived risk falls, as in the case of Spanish bonds on Wednesday, the bond is priced upwards and the fixed income falls as a percentage of the new price. This is a signal of the interest the government must offer at its next auction. Spain got into difficulties when the yield on its bonds rose to a level, of about 7.0 percent, at which it could not afford in the long term to finance its borrowing requirements.

arabstoday
arabstoday

GMT 03:39 2017 Friday ,24 November

European markets wobble amid US Thanksgiving holiday

GMT 22:09 2017 Thursday ,23 November

Bahrain Bourse daily trading performance

GMT 02:02 2017 Thursday ,23 November

Asian markets rally after Wall St lead, euro struggles

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

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*

spanish bond yields fall after moody\s rating spanish bond yields fall after moody\s rating

 



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*

spanish bond yields fall after moody\s rating spanish bond yields fall after moody\s rating

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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