The Spanish Treasury placed three- and four-year government bonds totaling €3,31 billion (slightly below the expected amount of €3,5 billion) even though yields rose significantly. For the three-year tranche (from 2,2 billion) the average rate has in fact risen to 4,813% from 4,291% in the previous auction in July on the same maturity. For the four-year tranche (1,111 billion) the yield was 4,984%. Spreads slightly down (-1,668%) on the other hand for 10-year Italian government bonds: 362 basis points.
The rise in the rates offered comes after the yields on ten-year bonds in circulation in recent days had dangerously approached the fateful 7% ceiling that in the past had announced the inevitability of the bailouts of Ireland, Greece and Portugal. This morning's sale is announced as the only one for the month of August. According to Unicredit, Madrid has already fulfilled around 60% of its financing needs on the markets against a European average of 67%.
