The auction of government bonds in Spain is successful, but at increasingly expensive prices. Today Madrid carried out a new placement of short-term bonds, those relatively simpler to place, three- and six-month bonds with which it raised a total of 3,048 billion euro, reports Dow Jones, slightly more than indicated in the forecast range (2-3 billion).
Demand levels have remained solid, indeed the demand-to-supply ratio is on the rise again but despite this, the Spanish treasury had to pay even higher yields. On three-month bonds, demand exceeded supply by 2,94 times, from 2,60 to 1 in the previous similar auction, on 26 June.
Yields climbed to 2,434 percent from 2,362 percent at the previous auction. On six-month bonds, the supply-demand ratio rose to 3,02 from 2,82, while wage rates increased to 3,691 percent from 3,237 percent.
