- Sony Kapoor, director of economic think tank Re-Define
Spain has successfully placed 3.13 billion euros of debt at an auction on Thursday, exceeding a target of 3 billion euros. The nation sold 10-year bonds at an average rate of 6.65 per cent and 2-year bonds at 4.77 per cent.
"They sold above the maximum amount. In terms of borrowing costs the 10-year costs have risen but it's still a strong bid/cover although it's below the average for the year," Alessandro Giansanti, rate strategist at ING said.
Later this day, the European Central Bank left its benchmark rate unchanged from the previous month at 0.75 per cent and softened rhetoric after promising to do "whatever it takes" to save the single currency the previous week.
Spanish and Italian bond yields rose and European stock markets edged lower after the press conference. The Stoxx Europe 600 Index retreated 1.25 per cent to 259.28. Germany's DAX Index fell 2.20 per cent and France's CAC 40 Index lost 2.68 per cent.
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