Good success for the auction of Spanish government bonds, with interest rates down sharply. Indeed, this morning the Treasury of Madrid placed Bonos at 3 and 6 months for a total of 2,5 billion euros, the maximum amount envisaged, resulting in a sharp drop in yields.
For the part with a 3-month maturity (1,74 billion) the average yield fell to 0,396% from 1,285% at the January 24 auction. Demand slows down with a bid-to-cover ratio of 4,04 versus 4,32 previously. Instead, for the 6-month tranche (764 million). the average rate fell to 0,779% from 1,847%, while demand is growing with a bid-to-cover up to 10,2 from 6,87.
