Spain on Thursday raised 4.8 billion euros (6.2
billion dollars) in a debt sale reflecting a growing, but still
hesitant, market confidence after the European Central Bank announced
a bond-buying scheme for troubled eurozone countries.
Ten-year bonds had a yield of 5.7 per cent, down from 6.7 per cent
in the previous auction. However, Spain was able to place only 858.7
million euros of the bonds, reflecting market distrust of long-term
Spanish debt.
Three-year bonds attracted a higher demand, but their yield rose
to 3.9 per cent from 3.7 per cent.
The bond sale was the second since the ECB announced that it was
willing to intervene in debt markets to shore up financially troubled
countries such as Spain.
Most analysts expect Spain to seek such an intervention, but Prime
Minister Mariano Rajoy's government has resisted pressure to reveal
its plans.
The eurozone had already pledged up to 100 billion euros for
Spain's ailing banks. Their needs are estimated at between 40 and 45
billion euros, the daily El Pais said Thursday.
The government is weighing the possibility of using the remaining
money to trigger the ECB's bond-buying programme and to avoid a full
sovereign rescue, which would come with tough economic conditions,
according to the daily.
