Spain has paid sharply higher yields of interest to borrow money on the international markets, to clear a crucial bond auction of three medium-term bonds. Which is better than the market could have predicted and ensures the stability of the Spanishmarket.
The Treasury sold 2.5 billion euros of two bonds maturing in 2015 and one bond maturing in 2016, at the top end of the targeted range.
Analyst Pablo De Barrio was positive about the government getting back on target, speaking in Spanish he said
"Although the cost has increased what we at least see is a higher demand, the government has cleared what it needed, it was 2.5 billion euros, well we have practically reached the target - one billion and something in the three year bonds, one billion and something in the four year bonds, and 4 million euros in an another special three year auction, so pretty much within the government's targets but paying more, of course."
On bonds due to be paid back in January 2015, it had to pay an interest rate of 4.373%, up from 2.89% in April.
on debt maturing in April 2016, Spain had to pay an interest rate of 5.106%, up from 3.374% on 15 March.
And The bond maturing April 30, 2016 sold 1.1 billion euros with an average yield of 5.106 %, higher than 3.374 %March 15. Demand was lower than previously, with the bond 2.4 times subscribed after 4.1 times at the March auction.
The government on May 9 took over Bankia, the country's fourth-largest lender, in an attempt to dispel concerns over the bank's ability to deal with losses related to the 2008 property crash.
And this morning shares in Bankia slumped a further 10 percent ,compounding a week of falls, as small investors who had participated in a July stock market listing sold their holdings which have lost over half their value since the flotation.
I am Ann Salter, thanks for watching, for the latest on the Eurozone crisis and other stories go to our website at ibtimes.co.uk
Written and Presented by Ann Salter