There was an auction of Spanish bonds this morning. Demand was up and the state sold €2.49bn of debt - which you could see as an achievment in the current climate - but it came at a huge cost.
Bonds due in January 2015 carried an average yield of 4.375pc, up massively from the last comparable auction in April, which saw an average of 2.89pc.Bonds due in July 2015 were even higher, at 4.876pc, compared with 4.037pc at an auction in May. Bonds due in April 2016 reached 5.106pc.
Last night Spanish PM Mariano Rajoy warned that there was “a serious risk we will not be able to borrow - or borrow at astronomical prices” and pleaded for an urgent “defence of the euro project”.
The Telegraph
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