Spain headed to market on Thursday with an auction for five-year bonds. Given the pressure on the countryâs public finances â including more credit downgrade fears â this oneâs worth a look. And the results were perhaps not too bad. Flashes, via Reuters: RTRS-SPAIN SELLS 3.5 BLN EUROS OF 5-YEAR BOND VS 2.345 BLN EUROS AT MAY AUCTION RTRS-SPAIN SAYS BID-TO-COVER RATIO OF 5-YEAR BOND 1.70 VS 2.35 PREVIOUSLY RTRS-SPAIN SAYS AVERAGE YIELD ON 5-YEAR BOND 3.657 PCT VS 3.532 PCT PREVIOUSLY The figure of â¬3.5bn was at the top end of the Spanish Treasuryâs target, while the yield increase was pretty moderate. Note the reduction in the bid-to-cover, though. Which, given that July will be heavy on Spanish debt issuance, is one to watch. http://ftalphaville.ft.com/blog/2010/07/01/276306/the-bonos-are-all-right-for-now/
They may consider this successful for now, but not if this trend continues... Especially if Moody's downgrades like they've threatened.
Moody´s threatenings are not worth the paper they are releasing their ratings on. IMHO, this company should be closed. The timing of their downgrades stinks mighty.
I agree. But for some dumbass reason market participants pay attention and react to their ratings. If/when they downgrade, I would expect yields to pop.