Yield on 10-year Spanish bonds remains stubbornly high near 7%, but yield on 2-year bonds is in the midst of a breathtaking crash.
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Spain 10-Year Government Bond Yield
Just as the president reminded us yesterday we are not a deadbeat nation, merely borrowing money today to pay the bills of yesterday, so, as the NY Times reports in this all-too-real article, many of the citizens of the US are also living not just paycheck-to-paycheck but short-term-loan-to-short-term-loan.
Italy could issue its first 30-year benchmark bond in more than three years in 2013 after successfully selling a new 15-year bond this week, the head of the Debt Management Office said Wednesday.
Rome, which has 2 trillion euros of public debt to refinance, shied away from selling longer-dated paper during the worst of the euro zone debt crisis, which pushed yields on its bonds and its borrowing costs higher across the curve.
Spain succeeded in raising 3.04 billion euros ($3.8 billion) in a short-term debt sale Tuesday but its borrowing costs soared as the eurozone debt storm battered Madrid.The Treasury managed to beat its goal of raising 2.0-3.0 billion euros in a sale of 12- and 18-month notes.It lured investors, with overall demand outstripping supply by more than two-to-one, but only at a sky-high price.Compared to May 14, the yield shot to 5.074 percent from 2.985 for 12-month notes and to 5.107 percent from 3.302 percent for 18-month notes, Bank of Spain figures showed.
Sovereign bond yields in Spain and Italy have been climbing across the board, not just the longer durations. Please consider Italy pays dearly to issue one-year debt.
Italy sold €6.5bn of one-year debt at the highest cost since December, underscoring how one of the world’s biggest bond markets has been dragged back into Europe’s debt crisis.
Spain's borrowing costs soared Tuesday in an auction of short-term debt, suggesting investors remain cautious about the country's financial future despite a convincing electoral win this week by conservatives ...