Spain Bond Yield Doubles Target, Lowers Rate, Italy Also Improves
Spain raised 10 billion euro at lower than expected rates. It has only planned to raise 5 billion euro
Spain’s benchmark 10-year bond yield declined 13 basis points to 5.194 percent at 11:50 a.m. in Madrid, the lowest in more than a week. Italy’s 10-year yield slipped 41 basis points to 6.578 percent, while the yield on Italian two-year debt plunged 69 basis points to 4.02 percent, the lowest since September.
Spain sold 10 billion euros ($13 billion) of bonds, twice the target for the sale, while Italy sold 12 billion euros of bills, easing concerns the countries would struggle to finance their debts and sending bonds and the euro higher.