We are seeing a major trend change. Investors have started to regain confidence in Spanish debt, which only Spanish banks were buying for several months. But recent events have restored some credibility in the national economy. In the Treasury's debt issue held yesterday, it sold ten-year bonds at less than 5%.
ETF funds that track Spanish debt have also been successful recently. Lastly, the risk premium continues to fall, settling at levels last seen in January. It looks like the uncertain outcome of elections in Italy has not jeopardized Spain's attractiveness to fixed income investors.
