The winds continue to favor the Spanish Treasury. Yesterday, for the fifth consecutive public debt issue, Spain sold debt at an interest rate less than it did the previous month. A heavy demand of 16 billion euros made the latest sale such a success.
The combination of low costs and high demand got the European Central Bank's attention. Its extraordinary policy, through which it offers to provide all the liquidity that the Treasury needs, is one factor leading to countries getting financing at the onset of 2012, because financial institutions are forming the bulk of the demand.
The ECB, therefore, is succeeding in its proposal to unclog the pipes of the financial services industry. This is the first of many steps that need to be taken for credit to return to Spain.