Spain Borrowing Costs Ease, Catalonia Unhappy
Spain’s borrowing costs on its 10-year government bonds fell to the lowest level since January on Thursday.
At its latest debt auction raised 4.8 billion euros and saw strong demand from investors for the bonds maturing in three and 10 years’ time.
Madrid has been able to more easily sell its bonds at lower rates of interest since the European Central Bank announced its bond-buying plan.
Trader Ignacio Blanco with Bankinter said: “Over the last month and a half bond interest rates are down more than two percent, since Draghi spoke at the end of July. There was strong demand in the days before the auction and today too. They were buying bonds before, they continued to buy today, and the initial operations after the auction were good.”
Many analysts have warned Spain’s borrowing costs could skyrocket to unsustainable levels unless Rajoy asks for an international bailout, at which point the ECBwould start buying Spanish bonds.
★
★
★
★
★
287 views • 8 slides