The Spanish treasury met its objectives decidedly with recent three- and ten-year bond sales. It raised 4.8 billion euros, which combined with the March issue totals to 9.3 billion euros. The forecast was between 7.0 and 9.0 billion.
The Treasury smartly took advantage of investors who wanted to buy three-year bonds, because it issues fewer ten-year notes and lowered the interest rates on these by nearly a whole interest point compared to August. 3.9 billion three-year bonds and 859 million in ten-year bonds were raised. Investors are most interested in near- and mid-term debt because they can resell it more easily.
Lucky for it, the Treasury was able to pay lower rates, but it should be careful becuase it is building up a lot of debt service payments between 2015 and 2017.
