Thursday 22 June 2017

France and Spain pay lower interest rates in latest bond auctions

The latest sales come as a boost to French President Nicolas Sarkozy
The latest sales come as a boost to French President Nicolas Sarkozy

Independent.ie reporters

BOTH France and Spain paid lower interest rates at their latest bond auctions.

This is despite downgrades to their ratings by Standard & Poor’s last week.

Spain sold 10-year bonds at a rate of 5.401pc, lower than the figure of 8.975pc in November and raised €6.6bn.

France raised €7.965 in a medium term bond issue which was also more than had been expected.

The yield on France's 2014 bond was 1.05pc, down from 1.58pc the last time such a bond was auctioned in October.

The latest sales will be a boost to French President Nicolas Sarkozy.

Meanwhile, ratings agency Fitch expects its ratings review of six euro zone countries to result in downgrades of one to two notches in most of them.

Fiitch put Belgium, Spain, Slovenia, Italy, Ireland and Cyprus on negative watch late last year. Mr Parker said the review would be concluded by the end of January

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