- Nomura rate strategist Artis Fankovics
Spain sold 4.6 billion euros of 2015, 2016 and 2022 bonds in an auction on Thursday, with nation's borrowing rates falling for the third consecutive day, amid growing expectations that the country will soon ask for international help. The average yields on Spanish government securities, due to mature in 2022, fell to 5.458%, down from 5.666% at the last auction on September 20. Demand was weaker compared to a previous month, with bids exceeding supply 1.9 times.
"That they managed a higher allocation at the long end ... is very encouraging. But it was somewhat expected given Moody's decision and improving risk sentiment," said Nomura rate strategist Artis Fankovics.
"If sentiment continues to improve, we'll probably see them tap bonds with higher maturity ... But I doubt at this stage they will issue a new 10-year bond because it's a high-risk strategy."
The Stoxx Europe 600 Index rose 0.19 per cent to 276.18. Germany's DAX Index edged higher 0.58 per cent to 7,437.23 and France's CAC 40 Index rocketed 0.22 per cent to 3,535.18.
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