When the Treasury sold two-, five- and seven-year bonds yesterday, it was no surprise that it had to offer record-high yields in order to raise the predicted 2.980 billion euros.
Spain raised a total of 6.5 billion euros in the two debt sales that took place this week. This amount will allow them to face their biggest debt interest payments in August, which will be nearly 9.8 billion euros.
But a bigger drama will play out in October when the Treasury will face 28 billion euros in loan payments. Bond issues and debt obligations are in a precarious and unsustainable situation for the mid- and long-term. A happy ending is nowhere in sight.
