"It's clearly not sustainable in the long term for Spain to be trying to service their debt levels at the current rate of interest in the short end"
- Principal Investment Management
Spain will sell 3 billion euros of debt on 19 July, as Mariano Rajoy's, Spanish Prime Minister, government is struggling to keep access to capital markets to ensure financing of the Eurozone's third-largest budget deficit. Spain will auction short-dated bonds maturing in 2014, 2017 and 2019.
"It's clearly not sustainable in the long term for Spain to be trying to service their debt levels at the current rate of interest in the short end," said Craig Veysey, Head of Fixed Income at Principal Investment Management in London. "Of course that's the only place where they can issue debt at the moment."
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