Investors' appetite for Spanish government bonds has not abated as demand continues to be strong. But everything has its price. And today the Treasury of Madrid had to increase the interest on government bonds to achieve the objective it had set. While the heads of the ECB are meeting in Barcelona, the economy ministry in Madrid placed 2,516 billion euros, 16 million more than expected, in three- and five-year bonds.
As for the Bonos triennial, Spain sold some 979 million with 4,06% efficiency, against 3,52% in the last auction. The demand for these securities was extremely high: over 2,823 billion requests. Also on sovereign bonds maturing in January and July 2017 respectively the yield increased: to 4,79% and 4,78% against 4,386% of the April 4 auction. Good demand also for these titles: 5,24 billion petitions.
The spread between the ten-year Bonos and the corresponding German Bunds remained stable, slightly down, at 422 basis points.
