Spanish Bond Yields Rise

Spain must pay higher yields of 3.35 billion euros ($ 4, 99 billion) in debt auction conducted yesterday local time.

Increased yields were as growing concern about the euro zone debt after the deal bailout Portugal. Investors worried about the debt crisis of Portugal transmitted to the Land of Matador that are geographically adjacent. In addition, concerns also arise because Spain is currently the largest holder of debt securities Portugal. On Tuesday (3 / 5), Portugal became the third country after Greece and Ireland that receive bailout funds the European Union and the International Monetary Fund (IMF) amounting to USD119 billion. Mention the latest information, the Ministry of Finance of Spain was forced to pay an average interest rate of 4.54% for a term of five-year bonds worth 3.35 billion euros.

Interest is up from 4.38% last on March 3 and from 4.52% at the close on Wednesday (4 / 5) yesterday. Despite higher interest rates, demand for Spanish bonds rose to 6.2 billion euros so optimistic Treasury bonds auction was in the range target of 3 billion-4 billion euros. The amount of yield debt securities Madrid Spain caused the stock market fell 0.50%. Spain's economy larger than Greece, Ireland, and Portugal have long struggled to convince the market that the country is different with the three European countries that have received bailouts from the IMF, the European Union.

Spanish monetary policy makers have imposed economic reforms to strengthen the banking reserve, cut the state budget, lower retirement age, and selling assets. Spanish Prime Minister Jose Luis Rodriguez Zapatero had also promised to reduce the level of Spain's annual public deficit below the EU benchmark of 3% of GDP in 2013. Today, Spain's public deficit reached 11.1% of GDP, 2009, the third highest in the eurozone after Greece and Ireland.