Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Gaza: A Truce At All Costs?

Read more

WEB NEWS

Web users call for peace in Gaza

Read more

WEB NEWS

NSA targets "Tor" network users

Read more

WEB NEWS

Teen slammed for taking smiling selfie at Auschwitz

Read more

BUSINESS DAILY

French government hopes to collect €1.8bn from foreign accounts

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

  • UN Security Council calls for immediate Gaza ceasefire

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • France calls on its nationals to leave Libya as violence escalates

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

  • Boko Haram kidnap Cameroon minister's wife in deadly attack

    Read more

  • Muslims prepare for Eid al-Fitr festival

    Read more

  • ‘Irresponsible’ American dad tries to scale Mont Blanc with children

    Read more

  • Ukraine fighting prevents observers from accessing MH17 crash site

    Read more

  • In pictures: Crowds flock to enjoy the Tour de France show

    Read more

  • Netanyahu says Hamas 'violating its own ceasefire'

    Read more

  • Video: At the scene of the Air Algérie crash in Mali

    Read more

  • Costa Concordia arrives in port of Genoa to be scrapped

    Read more

  • In pictures: Youths clash with police at banned Gaza protest

    Read more

  • Russia lashes out at new EU sanctions over Ukraine

    Read more

  • Bodies of all Air Algérie crash victims to be brought to France

    Read more

  • Syrian army and ISIS both claim advances

    Read more

  • Briton kidnapped in Yemen freed after five months

    Read more

  • New round of Gaza ceasefire talks takes place in Paris

    Read more

Europe

Spain passes crucial bond sale test, but costs soar

Text by News Wires

Latest update : 2012-06-07

Spain's borrowing costs soared Thursday as it auctioned off over EUR 2 billion in bonds. Despite concerns, Spain managed to raise EUR 2.074 billion in the sale even with soaring costs.

AFP - Spain's borrowing costs soared in a major bond test Thursday but the nation proved it can access the market despite growing fears of a banking bailout.

The treasury raised 2.074 billion euros ($2.6 billion) in the auction of two-, four- and 10-year bonds, comfortably beating its own target range of 1.0-2.0 billion euros, Bank of Spain figures showed.

But the funds came at a high cost, with the 10-year bonds fetching more than 6.0 percent -- a rate widely regarded as unsustainable for the state over the longer term.

Investors fear Spain will be forced to snatch an international lifeline because it cannot raise the huge sums required to rescue its bad loan-ridden financial sector.

Markets are wary of the unknown cost of bailing out the banks and pessimistic about the state's struggle to rein in public deficits at a time of recession and high unemployment.

An IMF report on Spanish banks to be released on Monday will price their capital needs at 40-80 billion euros ($50-100 billion), Spanish newspaper ABC said Thursday, citing a draft of the document.

The Spanish authorities have given themselves two weeks to take a decision on how to recapitalise weakened banks.

In addition to the IMF report, officials are waiting for assessments by two private consulting firms, Roland Berger and Oliver Wyman, on the state of the banks' balance sheets.

A breakdown of the latest sale showed the rate on benchmark 10-year bonds climbed to an average 6.044 percent from 5.743 percent in the previous comparable auction April 19.

But that was still short of the euro era record of 6.975 percent struck November 17, 2011.

For two-year bonds the rate shot to 4.335 percent from 3.463 percent at the previous comparable auction on April 19 and for the four-year bonds it surged to 5.353 percent from 4.319 on May 17.

 

Date created : 2012-06-07

  • SPAIN

    Spain sends distress call over 'closed' credit markets

    Read more

  • SPAIN

    Anxious Spaniards withdraw billions from banks

    Read more

COMMENT(S)