Spain Has Successful Bond Auction - Jun. 7, 2012
Spain found strong demand for its debt in a successful auction Thursday, two days after its treasury minister warned that the country was in danger of being shut out of markets for the cash it needs to operate.
Demand was more than three times the €611 million worth of 10-year bonds that Spain offered, up from a bid-to-offer ratio of 2.42 in April. But the interest rate Spain had to pay to sell the debt rose to 6.044% from 5.743% in April.
The yield for Spain’s 10-year debt edged slightly lower to 6.15% in trading following the auction.
Treasury Minister Cristobal Montoro told Spanish radio station Onda Cero Tuesday that “the risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt.”