France and Spain Successful Long-term Debt Auction

Thursday, June 7 2012, the Spanish Treasury watched closely as they held a bond auction, where it manage to sell €2.0740 billion. This bonds maturing in year 2014, 2016 and 2022 out of €1 to €2 billion mark, 3.290 was the bid to-cover-ratio.

The ten-year bond was sold higher than the yield sold athe last auction prior to that.  The previous was 5.77 percent while the bond sold on Thursday was 6.12 percent.

At a yield of 5.44 percent the four-year bond was auctioned compare to the previous which was at 4.36%. The two-year bond that was auctioned before at 3.52% was auctioned on Thursday at 4.48%.

After the auction on Thursday the Spanish risk premium which reached a daily-high of 478 points, slightly fell bellow.

Later that day France also held an debt auction that sold €7.8360 Billion worth of bonds to mature on April 2019, April 2022, April 2060 out of the seven to eight billion on offer.  2.46% is the average yield on the France 10-year bonds.

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