On Tuesday Spain raised about 4.975 billion euros at an auction of 12 month and 18 month bonds. Spain had to offer an increased interest rates as the investors expected a higher returns. As the investors sought for a higher interest rate amid of the new concerns over the euro zone debt level. In the 12 month bonds at an average the Spanish treasury sold about 3.7 billion euros.
The securities last sold during the month of October 19 which had an increase 28.28% said the latest report.
On an average the 18 month bonds had raised to about 1.2 billion euros about 2.664% says the report. At the auction which was on October 19 the average yield was about 2.009% which is an increase of 32.60%. With the bond issues the treasury had hoped to raise about 4.5 and 5.5 billion euros says the report. The announcement increased the market concerns over the solvency of other euro-zone nations .
Eurozone nations like Portugal and Spain are at present grappling by the substantial public deficits. From nearly two years after the recession hit Spain collapsed and is recovering economic recovery. Official data showed the Spain recovery as the property bubble Spain overcame and the austerity measures.
Read More