Spain's borrowing costs shot up at

Spain's borrowing costs shot up at a bond auction on Thursday, after economic data confirmed the country is back in recession and reports that nationalised Bankia SA had suffered an outflow of deposits hammered its share price.

The Spanish Treasury had to pay around 5% to attract buyers of three- and four-year bonds. The longer-dated paper sold with a yield of 5.106%, way above the 3.374% the last time it was auctioned.

Spanish Prime Minister Mariano Rajoy warned on Wednesday that his government, struggling to reduce its budget deficit, could soon find it difficult to fund itself affordably on the bond market unless the pressure eases.

"This ... fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away but at ever-higher yields," said Richard McGuire, rate strategist at Rabobank in London.

"This unfavourable trend looks set to remain firmly in place ... Ultimately, this ratcheting up of yields will likely require some form of outside intervention," McGuire said.

Spain's 10-year yields have spiked back above 6%, which investors view as a pivot point that could accelerate a climb to 7%, a cost of borrowing widely seen as unsustainable even though Madrid has sold well over half its debt needs for the year.

Resultados (inglés) 1:

Spain's borrowing costs shot up at a bond auction on Thursday, after economic data confirmed the country is back in recession and reports that nationalised Bankia SA had suffered an outflow of deposits hammered its share price.The Spanish Treasury had to pay around 5% to attract buyers of three-and four-year bonds. The longer-dated paper sold with a yield of 5.106%, way above the 3,374% the last time it was auctioned.Spanish Prime Minister Mariano Rajoy warned on Wednesday that his government, struggling to reduce its budget deficit, could soon find it difficult to fund itself affordably on the bond market unless the pressure eases."This fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away but at ever-higher yields," said Richard McGuire, rate strategist at Rabobank in London."This unfavourable trend looks set to remain firmly in place. Ultimately, this ratcheting up of yields will likely require some form of outside intervention, "McGuire said.Spain's 10-year yields have spiked back above 6 percent, which investors view as a pivot point that could accelerate a climb to 7%, a cost of borrowing widely seen as unsustainable even though Madrid has sold well over half its debt needs for the year.

Resultados (inglés) 2:

Spain's borrowing Costs shot up at a bond auction on Thursday, after Economic data nhận the country is back in recession and reports có nationalised Bankia SA Had suffered an outflow of deposits hammered nó share price.

The Spanish Treasury Had to pay around 5% to Attract Buyers of Three-four-year bonds and. The longer-dated paper sold with a yield of 5106%, way above the 3374% the last time it was Auctioned.

Spanish Prime Minister Mariano Rajoy on Wednesday có HIS Warned government requirements, struggling to Reduce budget deficit nó, could soon find it difficult to Itself affordably on the bond fund market pressure eases the nếu.

"This ... fits the pattern of recent sales, with the Spanish treasury successfully getting away but nó supply at Ever-Higher yields," said Richard McGuire, strategist at Rabobank in rate London.

"this trend looks set to Remain unfavourable firmly in place ... Ultimately, this ratcheting up of yields require some form of Will Likely outside intervention," McGuire said.

Spain's 10-year yields have spiked back above 6%, mà Investors view as a pivot point could có Accelerate a climb to 7%, a cost of borrowing widely seen as unsustainable Even though Madrid has sold well over half nó debt needs for the year.