Arab Today, arab today spain raises 395bn euros in bonds at lower rates
Last Updated : GMT 01:44:12
Arab Today, arab today
Arab Today, arab today

Spain raises 3.95bn euros in bonds at lower rates

Arab Today, arab today

Arab Today, arab today Spain raises 3.95bn euros in bonds at lower rates

Madrid - AFP

Spain succeeded in raising nearly four billion euros at lower rates in a key bond auction on Thursday, seen as a significant feat in the midst of the eurozone debt storm. The sale showed Spain was able to get market financing at manageable, albeit expensive, terms -- far better than those the market offered Italy just two days earlier. The European Central Bank has boosted the market by buying Italian and Spanish government bonds since a summer panic broke out over the debts of the eurozone\'s third- and fourth-biggest economies. Spain raised 3.95 billion euros ($5.4 billion) in the auction of eight- and nine-year bonds, the Bank of Spain said in a statement. Demand outstripped supply by about two-to-one, it said. The demand for the issue was a positive sign, especially when compared to the weak reception for an Italian bond issue on Tuesday, said Soledad Pellon, analyst at brokerage IG Markets. \"The yields Spain is paying are far from ideal, even more so when we take into account that the ECB has been making massive purchases of Spanish bonds on the secondary markets,\" Pellon said. \"This should have eased the pressure on our country much more,\" the analyst added. \"Nevertheless, the auction went relatively well if we take into account the highly uncertain context now.\" Markets are beset by worries that Greece will default on its massive debts and drive cracks into the 12-year-old eurozone. French President Nicolas Sarkozy and German Chancellor Angela Merkel backed Greece after a telephone conference Wednesday with Greece\'s Prime Minister George Papandreou. Sarkozy and Merkel issued a statement insisting that they \"are convinced that the future of Greece is in the eurozone.\" But doubts remained over whether Europe can overcome the stubborn, unfolding crisis. US Treasury Secretary Timothy Geithner said Europe\'s leaders recognize that they will have to do more to beat the crisis. \"They recognize they have been behind the curve,\" he said Wednesday. A breakdown of the latest Spanish bond sale showed investors demanded the following yields: - 4.969 percent for 1.022 billion euros in eight-year bonds; - 5.006 percent for 1.396 billion euros in an issue of nine-year bonds; - 5.156 percent for a second issue of 1.532 billion euros in nine-year bonds. The rates were significantly lower than the 5.896 percent the Spanish government was obliged to pay in a 10-year bond auction on July 21. Spanish 10-year government bonds were trading at 5.388 percent shortly before the auction. Italy had to pay yields of 5.60 percent for shorter-dated five-year bonds and 5.59 percent for seven-year bonds in a government bond auction Tuesday, a sign that it has become a bigger source of market concern than Spain. Spain has promised to reduce its annual public deficit from the equivalent of 9.2 percent of gross domestic product last year to 6.0 percent of GDP this year, 4.0 percent in 2012 and 3.0 percent in 2013. Doubts linger over its capacity to reach those goals because of the slow pace of economic growth, an unemployment rate of more than 20 percent and stubborn deficits in the semi-autonomous Spanish regions.

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 raises 395bn euros in bonds at lower rates Arab Today, arab today spain raises 395bn euros in bonds at lower rates

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Haifa Wahby bets on her new drama show

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 15:06 2017 Saturday ,25 March

Dialysis Supplies Dwindle for Syrians

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
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