Positive signals for Spanish government bonds. On the day in which the announcement of the anti-spread plan by the ECB president Mario Draghi is awaited and while the Spanish head of state Mariano Rajoy meets the German chancellor Angela Merkel to negotiate the conditions for asking for aid from Europe, the Treasury of Madrid has managed to place the 3,5 billion Bonos that it had set itself at almost halved yields.
2-year bonds expiring in April 2014, they registered a average yield of 2,798% against 4,706% last June, with a twice the demand than the supply. They have been placed 682 million euro and the maximum rate reached in the session was 2,946% against 4,791% in June.
The Bonos expiring in June 2015 also did well: the highest yield recorded was 3,774% against 5,197% in the last auction, while the average yield fell to 3,676% from 5,086%. The Treasury managed to place 1,43 billion e supply exceeded demand by 1,8 times.
While Madrid has sold 1,39 billion Bonos over four years, expiring in October 2016. Also in this case the average yield dropped to 4,603% from 5,971% of the last auction. In this case the demand was 1,9 times the offer.
And meanwhile on the secondary market it spread continues to go down settling at 476 basis points. And the reference index of the Madrid Stock Exchange, the Ibex, gained 1,54%.
