Thursday, June 7, 2012

Spain moves ahead

Spain Market-Access Concern Eases, Bond Sale Beats Target

(Corrects market bond yield in second paragraph.)
Two days after a senior government official said Spain’s access to debt markets was closed, the Treasury beat its 2 billion-euro target ($2.5 billion) at a bond sale, easing concern about financing the region’s third-biggest budget deficit.
Spain sold its benchmark 10-year bond to yield 6.044 percent, the most since Nov. 17 when the yield in the secondary market reached a euro-era record 6.78 percent. Demand for the security was 3.29 times the amount sold, higher than at the previous auction in April. In the secondary market Spain’s 10-year bond yield fell to 6.109 percent after the sale at 10:05 a.m. in London.
Comment: One more case of an discrepancy between the propaganda of the mass media's opinion makers and market reality.

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