Over Spain, today was also a day of placements for France. The Treasury of Paris has placed 7,826 billion euros in the medium and long term but with slightly higher interest rates than in the last auctions. Demand was between two and three times higher than supply and made it possible to achieve the set goal.
For the titles at 10 years, benchmark for spread calculation, Paris placed 4,671 billion at an interest rate of 2,53%, up slightly from 2,46% of the June 7 auction, which had marked an all-time low. On the other hand, yields on the other two government bonds fell sharply. The Treasury has placed 1,750 billion securities maturing in October 2019 at an average rate of 2,02% against 2,48% previously and bonds due in October 2023 with a yield of 2,70%, a clear decrease compared to the last 3,50%.
Yesterday the new government led by Prime Minister Jean-Marc Ayraul presented the new government which is about to prepare budgetary measures to meet the target of a deficit of 4,5% of GDP at the end of the year.
The Oat-Bund spread remains stable around the opening value of 108 basis points.
