Yields on Spain’s short term debt spiked after an auction this morning saw the country sell €2 billion in debt.
3-month yields rose from 0.899% in March to 1.371% at today’s auction, according to Reuters.
Note that this increase is likely somewhat the result of the ECB rate hike in April, though it is not entirely responsible for the spike.
The auction, however, was successful, though the euro has pulled backed slightly since. Spain also reported a deficit of 9.2% of GDP for 2010 in this morning’s eurostat report, and worries over the situation in Portugal and Greece are likely contributing to concerns Spain may face contagion risk.
The euro’s pull back may be as much a product of the Spanish auction as the German government comments on Greek debt restructuring.
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