Spanish 5 yr bond auction successful

A

ASusilovic

Spain headed to market on Thursday with an auction for five-year bonds. Given the pressure on the country’s public finances — including more credit downgrade fears — this one’s worth a look.

And the results were perhaps not too bad. Flashes, via Reuters:

RTRS-SPAIN SELLS 3.5 BLN EUROS OF 5-YEAR BOND VS 2.345 BLN EUROS AT MAY AUCTION

RTRS-SPAIN SAYS BID-TO-COVER RATIO OF 5-YEAR BOND 1.70 VS 2.35 PREVIOUSLY

RTRS-SPAIN SAYS AVERAGE YIELD ON 5-YEAR BOND 3.657 PCT VS 3.532 PCT PREVIOUSLY

The figure of €3.5bn was at the top end of the Spanish Treasury’s target, while the yield increase was pretty moderate.

Note the reduction in the bid-to-cover, though. Which, given that July will be heavy on Spanish debt issuance, is one to watch.

http://ftalphaville.ft.com/blog/2010/07/01/276306/the-bonos-are-all-right-for-now/
 
Quote from ASusilovic:


RTRS-SPAIN SAYS BID-TO-COVER RATIO OF 5-YEAR BOND 1.70 VS 2.35 PREVIOUSLY

RTRS-SPAIN SAYS AVERAGE YIELD ON 5-YEAR BOND 3.657 PCT VS 3.532 PCT PREVIOUSLY
More...

They may consider this successful for now, but not if this trend continues...

Especially if Moody's downgrades like they've threatened.
 
Quote from Kassz007:

They may consider this successful for now, but not if this trend continues...

Especially if Moody's downgrades like they've threatened.
More...

Moody´s threatenings are not worth the paper they are releasing their ratings on. IMHO, this company should be closed.

The timing of their downgrades stinks mighty.:mad:
 
Quote from ASusilovic:

Moody´s threatenings are not worth the paper they are releasing their ratings on. IMHO, this company should be closed.

The timing of their downgrades stinks mighty.:mad:
More...

I agree. But for some dumbass reason market participants pay attention and react to their ratings. If/when they downgrade, I would expect yields to pop.
 
You must log in or register to reply here.
Back
Top