Spain has become a hot investment trend for investors. Improving macro and credit conditions in peripheral European nations and a rally among emerging economies has freed up money, which the investors are pumping into our economy. This explains why yesterday the Treasury placed 10-year bonds at the lowest interest rate in modern history.
Spain will pay 3.059% to treasury investors who have never settled for rates so low. In comparison, they are 56% cheaper than when they peaked in 2011 at 7%. Because nearly half of the loan issues were 10-year bonds, Spain will have some time to pay back the loans. In the meantime, others will likely be investing in our national economy.
