Daily Commentary: On Auction Results from Spain

Today's big news was the bond auction in Spain. Spain's auction went off without a hitch but at a cost. Spain sold 2.5 bln euros ($3.3 billion USD). The Spanish Treasury sold a 1.1 bln euro bond maturing 31 Oct 2014 (average yield: 3.463%, bid-to-cover: 3.3 vs 2.0 at previous auction in October). The Treasury also sold 1.4 bln euros of ten-year paper due Jan. 31, 2022 with a yield of 5.743%. While the bond was 2.4 times subscribed, better than the 2.2 times at the last primary auction in January, the average yield then was 5.403%.

Now Spain is saying it has covered 47% of this year’s bond issuance but the country remains in the throes of crisis. Yesterday, we received news that Spain's credit delinquencies are at a near twenty year high of 8%. And house prices fell another 7.2% in the f...


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