Spanish bond sale moderately successful

Moderate applause for the weary matador. That's a bullfighting image to help understand yesterday's treasury issue in Spain. The Treasury placed 3.65 billion euros in 12- and 18-month bonds yesterday, beating top estimations, which predicted the issue would only raise 3.5 billion euros.

With respect to the 5.10% rates in June, the average yield of yesterdays issues were 3.9% and 4.9%, respectively.

Despite the moderate success of the bond issue, the first big post-reform test will take place tomorrow when Spain issues two-, five- and seven-year bonds.

Why? Because Spain's main problem is getting mid- and long-term financing.

The near-term debt sale doesn't resolve anything, because pressure on the risk premium will remain high. Can the Treasury win any more applause?