June 26, 2012 – SPAIN - Not much to add to Reuters summary of the overnight Spanish bill auction. The good news: the country that is not Uganda sold €3.08 billion compared to a range sought of €2-3 billion. The bad news: the price paid to sell this debt more than makes up for any optics that this was a good deal. “Spain’s short-term borrowing costs nearly tripled at auction on Tuesday, underlining the country’s precarious finances as it struggles against recession and juggles with a debt crisis among its newly downgraded banks. The yield paid on a 3-month bill was 2.362 percent, up from just 0.846 percent a month ago. For six-month paper, it leapt to 3.237 percent from 1.737 percent in May… Spain sold 3.08 billion euros of its short-term debt on Tuesday, slightly above its target amount, even as the Treasury paid the highest rates to sell the paper since November and met with falling demand from the country’s struggling banks. The Treasury sold 1.6 billion euros of a 3-month bill, and 1.48 billion euros of a 6 month bill, which together was just above the 2-3 billion euro target set. The Treasury has overshot its sales target in recent auctions, showing it still is capable of selling its debt even if has to rely on domestic banks to do so as international investors avoid Spanish debt.” Here’s a hint to whoever is pretending to be in charge of Spanish finances: selling more debt than the ‘max’ just to show you still have bond market access (i.e., debt bought by just downgraded Spanish banks) while paying ridiculous interest on this ‘optical success’ is about the dumbest thing a broke country can do. But who are we to judge. We will leave that to the bond market. –Zero Hedge
5 Responses to Eurozone crisis: Spain’s borrowing cost triples in one month
Stewart says:
June 26, 2012 at 12:03 pm
The engineered collapse is coming full circle.
Reply
The Extinction Protocol says:
June 26, 2012 at 12:18 pm
And it almost defies belief…
Reply
yardley7 says:
June 26, 2012 at 1:56 pm
It is like watching a train wreck in slow motion, crashing and bringing more into the fray. I feel sick.
Reply
DLHenry says:
June 26, 2012 at 7:57 pm
exactly
Reply
Irene C says:
June 26, 2012 at 10:17 pm
I agree. It’s sad. Yet we keep on watching it as the wreck doesn’t seem to end, knowing it will soon come our way. 
http://theextinctionprotocol.wordpress.com/2012/06/26/eurozone-crisis-spains-borrowing-cost-triples-in-one-month/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 