Narrow escape for the Spain, which overcomes the obstacle of a new and feared one government bond auction. Madrid has registered a solid demand and even raised a little more than the expected maximum, with a total of 2,07 billion. Yields however have increased: those on 10-year Bonos reached 6,121%, against the 5,778% paid in a similar auction last April 19th.
On ten-year issues, however, Spain recorded a reassuring strengthening of demand, which exceeded supply by 3,3 times, according to Dow Jones reports, against a ratio of 2,4 to 1 in the previous auction. Yields also rose on the other bonds on offer, at 2 and 4 years, but demand for these securities also strengthened.
In detail, the 2014 bonos was placed for 638 million with a bid-to-cover of 4,3 compared to the 3,3 of the previous auction, with a yield of 4,335%, up from 3,463%. The 2016 bond was placed for 825 million with a bid-to-cover of 2,6 from 2,5, with a yield of 5,353%, up from 4,319%. Finally, the 2022 bond was placed for 611 million with a yield of 6,044%, up from 5,743% and a bid-to-cover of 3,3 from 2,4.
After reporting the results, the Madrid Stock Exchange accelerates the rises at most 1,58%, while the net reduction on the Spanish bonds already in circulation is accentuated. By late morning, 6,12-year Bonos yields eased to XNUMX% e the spread with the Bund drops to 474 basis points, moving further away from the psychological threshold of 500 points.
The spread of Italian BTPs also decreased sharply this morning, at 421 basis points. As for the other main share lists, a Milano the Ftse-Mib gains 0,85%. Positive too Paris (+ 0,75%), Frankfurt (+ 0,66%) and London (+ 0,78%).
