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"Spain is considered a far more attractive credit than Italy"
- Michael Leister, rate strategist at WestLB
Spain sold €6.03 billion of debt on Thursday, more than initially expected and at a lower rate compared to Italy, easing concerns the country may lose access to financial markets next year.
"A good auction ... they managed to sell quite a chunk. It won't help to calm these fears everyone in the market is having about funding in 2012, but Spain is considered a far more attractive credit than Italy," strategist at West LB, Michael Leister said.
"The contrast with Italy is striking. Spain, despite its severe economic problems, is judged to be a safer credit," said Nicholas Spiro, economist at Spiro Sovereign Strategy.
"Italy is walking on very thin ice at the moment given the scale of its funding needs next year. Spain is better placed on this front and has more policy-making credibility in the eyes of investors."