Despite the tensions on the Iberian market, investors like Madrid, but at the right price. This morning the Spanish Treasury placed 2,541 billion of two- and ten-year government bonds with demand that almost doubled supply.
Specifically they were issued 1,116 billion maturing in 2014 with a yield of 3,30%, slightly down from the 3,495% of the last auction and the 3,463% of the current secondary market. As for instead the Bonos expiring in 2022 (the benchmark securities for the calculation of the spread), Madrid placed 1,425 billion with an average interest rate of 5,743%, up slightly from the 5,403% of the last issue.
In the meantime, on the secondary market, 10-year bonds have achieved a yield of and the spread has again exceeded the threshold of 410 basis points and stands at 412 bp.
