The Spanish Treasury has managed its debt sales shrewdly this year, getting half of its financing needs for the year already and at better interest rates than it expected. Its strategy consists of ramping up debt sales as soon as the market is favorable.
Yesterday the Treasury launched a round of 10-year bonds, allowing it to raise half of its mid- and long-term debt goals for 2013. Getting the resources to pay immediate debt and deficit costs only results in high-interest payments to service more debt. The situation can only be eased by solid management and structural changes to debt issues (chaning expenses and revenues) in order to stop public accounts from hemorrhaging.
