We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Today's bond auctions were closely watched by observers, hoping to see whether last week's EU deal was enough to calm investors' fears. Antonio Calanni/AP
Bond Auctions

Belgium, Spain and bailout fund perform better in bond auctions

There’s little respite for Greece, though, which is asked to pay a higher yield on an experimental auction of short-term bonds.

THREE EUROPEAN ECONOMIES have seen their costs of borrowing fall this morning as they successfully raised cash through short-term bond auctions this morning.

While Belgium and Spain – both of whom have appointed new governments this month – and the eurozone bailout fund all saw their costs fall, there was little comfort for Greece which faced penal interest rates at its own experimental short-term auction.

Spain’s auction fared best, with the national treasury raising €850m more than expected by taking advantage of relatively low interest rates for 12-month borrowings.

The treasury was asked to pay an average of 4.050 per cent interest for that borrowing, down from 5.022 per cent on the last similar occasion – while demand for the bonds was over three times the amount on offer.

Belgium, too, saw its costs fall – with the interest for its 12-month offerings falling from 3.396 to 2.167 per cent, while demand was 2.2 times the supply (up from 1.64 times in the last similar auction).

The European Financial Stability Fund raised just under €2 billion in an auction of its own, seeking to raise short-term operational cash – paying an average interest rate of just 0.222 per cent for three-month bills, with demand more than trebling the bonds up for sale.

There was no similar luck for Greece, however, which held an experimental auction of six-month bills to gauge the level of interest provided by investors.

Its auction raised €2 billion but at an interest rate of 4.95 per cent – higher than the 4.89 per cent it paid in the last similar auction, despite a small increase in demand.

Barroso hails Euro deal – but slams UK’s “impossible” demands

MEPs approve Kevin Cardiff’s nomination to Court of Auditors

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.