The Treasury's first debt issuance of 2013 ended with a solid success as it raised 5 billion euros more than predicted. The debt placement generated less demand than January of 2012, but interest rates were lower given that 10-year notes fell from 5.13% to 4.90% and two-year notes fell from 2.39% to 2.11%.
Despite the lower rates, Spanish debt continues to be one of the more attractive investments across Europe. If the investing landscape does not change substantially, the Treasury has the capacity to raise the 210 billion euros that it needs. The positive aspect is that this amount of revenue would prompt the ECB to offer Spain some protection, lowering tensions and sending the risk premium to lower levels.
