This week the Spanish treasury is in dreamland. It saw high demand for a recent bond and note issue and raised more money than was predicted at interest rates lower than the last emission.
The treasury lucked out, too, because everything it wished for has come true. If last Tuesday's debt issue was successful, then yesterday's long-tern issue was spectacular.
Both sales mean that Spain has hit the lottery and raised some 10.97 billion euros through both operations, which is 41.5% higher than their objective of 7.75 billion. A prize like this was possible thanks to extraordinary interest in the debt, which rose to 29.5 billion euros in trading volume. This kind of activity was possible due to cheap financing costs compared to previous operations.
Paying up to 22% less
Yesterday's treasury bond issuance crowned a dreamlike weak. Increased bids, which rose to 11.215 billion euros, made it possible for the Spanish treasury to obtain around 6.03 billion euros for the public coffers when they had only expected to earn between 2.5 and 3.0 billion.
