Spanish Bond Auction Goes OK, But Borrowing Costs Are On The Rise

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Photo: AP

The Spanish government just went to the debt markets and borrowed 3.13 billion euros, which was above the 3 billion euro target.However, borrowing costs were higher and demand was weaker thna in a similar auction a month ago. 

Here’s a round up of the results from DJ FX Trader:

2-year bonds: 4.848%, up from 3.609% in March.

4-year bonds: 6.059%, up from 5.621% in July.

10-year bonds: 6.706%, up from 6.505% in July.

All eyes will be on the European Central Bank and its president Mario Draghi who will be releasing its monetary policy decision later this morning.

Last week, Draghi said he would do “whatever it takes to preserve the euro.”  Some think this means some sort of new bond buying program will be launched to help lower borrowing costs in the debt-laden euro countries like Spain.

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