Success in the last Treasury auction of the year. Spain has placed EUR 5.639 million in letters three and six months and has managed to divide by three the interest of the first and the halving of the latter.
The goal was 4,500 million euros. Shortly after the auction, the very 'Financial Times' placement greeted with an article titled 'Viva Espana' and stressed that the results push up the price of the euro.
Also, the economic daily indicates that behind the success of the placement is the European Central Bank, which performs on Wednesday's first offering low cost loans to banks in the region with a maturity of three years, a measure aimed specifically to entities to acquire debt of countries like Spain or Italy.
Spain has awarded EUR 3.717 million in letters to three months with an average interest of 1.735%, almost a third of the 5.11% used in the previous auction, just a month ago. Demand exceeded supply by 2.9 times.
Spain has also placed 1.922 million in letters to six months with an average yield of 2.435%, less than half of the 5.227% previously. The demand exceeded the supply 4.1 times.
At the previous auction of these names the Treasury had to pay the highest return since 1993 in the case of letters to three months, there were no letters for this period between 1994 and 2002 - and for letters to six months, the highest since 1997.
The auction, which was held the same day that the Congress of Deputies will ratify the election of Mariano Rajoy as the new Prime Minister, seems to show that the market has welcomed the general guidelines of the next government.
This is the last time the Treasury is subject to the scrutiny of the markets in 2011, and will not return until January 5, with a bond issue. On January 12 held an auction of bonds, the January 17 letter to one of 12 and 18 months and another 24 points to 3 and 6 months.
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