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Spain: Happy. Emilio Morenatti/AP

Spain raises nearly €5bn in successful short-term bond auction

Spain sees the interest rate for 12-month bonds fall significantly, while Belgium has mixed results in an auction of its own.

Updated, 10.45

THE SPANISH GOVERNMENT has shaken off news of its downgrade by Standard & Poor’s by raising almost €5 billion on the bond markets – at significantly lower interest rates.

The Spanish treasury raised €3bn in 12-month bonds selling at an average yield of 2.15 per cent, a major improvement on the 4.05 per cent rate it paid at the last similar auction.

Another €1.87 billion was raised in the sale of 18-month bills, at an average interest rate of just under 2.5 per cent – again, down from 4.226 per cent the last time that Spain sold a similar bond.

In both cases, demand for the government debt was more than three times the amount on offer.

The result – which has seen the cost of borrowing cut in half – is very good news for Spain, which was among the four eurozone member states to have its credit rating cut by two notches by Standard & Poor’s last Friday.

Belgium has also raised almost €3 billion in its own auctions, though with mixed results: yields on a 3-month bond hit 0.429 per cent (up from 0.264 per cent last time), though 12-month bonds only pay 1.162 per cent as opposed to 2.167 per cent the last time out.

Further indications of market response to the S&P downgrade will come later today when Greece – which was not downgraded, having already been lowered to ‘junk status’ – and the European Financial Stability Facility both hold bond auctions of their own.

The EFSF auction will be of particular interest, having also been downgraded by S&P yesterday – following France in losing its AAA status.

Bailout costs likely to rise after S&P downgrades EU fund

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    Mute Nigel Garvey
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    Mar 22nd 2019, 10:03 PM

    After Erdogan’s recent rhetoric (night before) I wonder did he truly act alone ? ….

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    Mute Chris Maynard
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    Mar 22nd 2019, 10:42 PM

    after trump’s recent rhetoric, i wonder did the nz truly act alone ? ….
    after fraser anning’s recent rhetoric, i wonder did he truly act alone? …

    see how ridiculous this sounds? hate knows no religion. only hate. we, collectively as a society, have to decide to stop pitting one side against the other if we truly want to tackle terrorism on both sides.

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    Mute Sean Murphy
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    Mar 22nd 2019, 11:23 PM

    @Nigel Garvey: I couldn’t believe what he done. To show the video from inside the mosque on a large screen to an audience was reckless. To then say Aussies will go home in caskets like their grandads in WW1 is an incitement to violence. I’m surprised the international media didnt make more of it. Could you imagine of Trump had done that?

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    Mute Candace
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    Mar 23rd 2019, 1:22 AM

    Any news on the tens of Christians butchered last week in Nigeria or dies New Zealand take priority?

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    Mute ciaran111
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    Mar 23rd 2019, 12:58 AM

    And people wonder why islamofascism is on the raise ?2 attacks in 3 days .Nigeria also.

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    Mute Ger Murphy
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    Mar 23rd 2019, 7:17 AM

    @ciaran111: I can’t wait until they get into the EU. I’d happily pay their doles so I can worry about my kids commuting into town every day…

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    Mute Maurice Dodd
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    Mar 22nd 2019, 10:49 PM

    Two billion backers

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    Mute baron floyd
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    Mar 22nd 2019, 10:28 PM

    Why, the vast majority of media in the world is refusing to print either the names or pictures of these rotten ba@$##ds, does the Journal repeatedly do so??

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    Mute alan doyle
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    Mar 22nd 2019, 11:50 PM

    Not sure this lad is playing from a full deck of cards. Just by the look of him.

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    Mute Philip Siggins
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    Mar 23rd 2019, 11:17 PM

    Since 9/11 tens of thousands worldwide murdered, butchered, beheaded, stabbed, burned alive, raped, thrown of building, stoned, all in the name of Islam and one backlash in New Zealand is anyone surprised ? Just imagine if the shoe were on the other foot and Muslims had been targeted by right wing extremists for the past 20 years what would the likely outcome be ?

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