A Warning to Portugal as Spain Sells Bonds |
| New York Times - Dec 21, 2010 |
Yields at Spain’s final debt auction of the year were higher than the rates at an equivalent sale a month ago, and analysts warned of tough times ahead in 2011 even as the country slashed its state deficit.
Tuesday’s auctions came shortly after Moody’s, the ratings agency, put Portugal on review for a possible downgrade, almost a week after doing the same to Spain, and having cut Ireland by five notches last week.
At the debt issues, Spain’s Treasury sold 3.9 billion euros ($5.1 billion) of its three- and six-month bills, at the top end of its three to four billion euros range.
The yield on the three-month issue was 1.804 percent, up from the 1.743 percent at the last auction on Nov. 23, while the six-month rose to 2.597 percent from 2.111. The higher yield, analysts said, reflected market concerns that Spain will end up needing a rescue package like Ireland and Greece.
Data from the Treasury showed that higher taxes helped Spain slash its state deficit by 46 percent in the first 11 months, leaving the country on target to meet its goal of reducing the broader public-sector shortfall to 9.3 percent of gross domestic product.
Read Full Article from New York Times
- Posted: 2010-12-21 11:13:39
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