- Henrik Drusebjerg, a senior equity strategist at Nordea Bank AB
Spain sold 2.54 billion euros of debt dated 2014 and 2022 on Thursday, above the target range of 1.5 to 2.5 billion euros for the auction.
The yield on the 10-year bonds increased to 5.74% from 5.403% at an auction in January. The yield on the 2-year government securities climbed to 3.46% from a prior 2.069% at an auction in March.
"A reasonable set of results, which will go some way to allaying fears the domestic bid for Spanish bonds has dried up. That said, as evidenced by the accepted yield on the 10-year, this support does come at a price," rate strategist at Rabobank Richard McGuire said.
European stocks closed lower the same day.
The Stoxx Europe 600 Index lost 0.47 per cent to 256.51. Germany's DAX Index retreated 0.90 per cent and France's CAC 40 Index tumbled 2.05 per cent.
© Dukascopy Bank