Business World

Saturday 24 March 2018

Spain attracts solid demand for €2.9bn three-month bills

Bond markets

SPAIN'S Treasury enjoyed a bit of good news yesterday after it saw solid demand for a short-term Treasury-bill sale, which was supported by the ECB's bond-buying programme.

Average yields on the three-month bill were at their lowest levels since March at 1.36pc, though a long way above yields of around 0.3pc paid before the eurozone debt crisis began. Spain sold €2.9bn of bills, near the maximum target of €3bn.

Prime Minister Jose Luis Rodriguez Zapatero said the recent rise in the spreads of Spanish sovereign debt against German debt -- which reached euro-era highs of over 400 basis points before the ECB bond-buying plan began on August 8 -- were not justified.

He added that Spain's economy was growing despite the extreme market volatility but the turbulence threatens to prolong the country's own crisis.

Spain plans to put a constitutional cap on public debt before elections in November. (Bloomberg)

Irish Independent

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