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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.