Signs of recovery as Spain sells two-thirds of bond target
SPAIN has already issued 63.2pc of the government bonds it had targeted for 2013 after a debt sale yesterday, and is now open to other forms of funding.
It has sold €85.3bn of medium and long-term debt and €59.9bn short-term bills this year, with its maximum target around €230bn. It is also due to hold an auction of three-year, five-year and 10-year bonds tomorrow.
Economy Minister Luis de Guindos (pictured) said yesterday that he expected a good result from the sale. He also said the euro region's fourth-largest economy was beginning to recover.
The Treasury in Madrid said it would consider diversifying its funding methods with instruments such as longer-dated bonds, inflation-linked bonds or dollar bonds if positive sentiment continued. Spain sold a 15-year bond through banks last week, its longest-dated security since 2011.
The yield on Spain's benchmark 10-year bond has fallen about 300 basis points since ECB President Mario Draghi pledged to support the euro in July 2012 – very positive for a country that many still referred to as a "basketcase" less than a year ago.
Still, the European Commission forecasts the Spain's debt will rise to 97pc of its economic output next year.