Spain's government and some of its top firms tapped into rising interest among domestic and foreign investors for bonds from weaker eurozone economies, issuing bumper levels of debt at sharply lower rates.
The Spanish Treasury saw huge demand for a new 10-year bond being sold via syndication, selling €7 billion, and issuing over €4 billion of short-term debt at its lowest yields since early 2010. The search for higher returns at a time of ultra-loose monetary conditions has persuaded investors to ignore Spain's dire economic outlook, confident that a European Central Bank pledge to protect the euro will continue to draw a line under possible sovereign losses.
The economy ministry source said the government was in no hurry to issue a 15-year bond, as had been expected by markets, and had been cautious when deciding when to issue the new 10-year after yields dropped to rates it saw as unrealistic.
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