Money goes where money is. Many cash-heavy investors are looking for high yields in Spanish debt. In the current climate and with the risk premium so low, the Treasury held its first debt issue of the year and was able to raise more than forecasted at interest rates that were at historic lows -- especially for five-year notes which went for 2.38%.These changes reflect a higher demand for Spanish debt, although cheap financing could have run its course for now.
To stabilize the situation, stock markets need to keep surging. This brings more foreign investors back to peripheral euro zone countries. To keep investors interested in our debt once they bite, we need the economy to really recover.
