SPAIN AND ITALY HEADED TO the bond markets today, selling a total of €9bn in bonds between them.
The euro gained 0.25% against the dollar immediately after the bond sale in which Spain sold €3bn in five-year bonds at 4.54%, and Italy sold €6bn in medium- and long-term bonds.
Business Insider’s Joe Weisenthal reports that Spanish stock is rallying after the successful bond sale.
Yesterday, Portugal raised €1.25bn in bond sales but some market strategists remained unconvinced that the successful sale suggests the country does not need a bailout. Portugal’s sale built expectations that Spain would be equally successful today, however analysts are warning that this could be a temporary reprieve for both countries and a bailout remains on their horizons.
The New York Times reports that the 6.7% rate on bonds from Lisbon yesterday are unsustainable for Portugal, and analysts remain concerned over Spain’s sovereign debt.
Confidence in Italy’s economy is higher, with some predicting the country will get through the current financial crisis relatively unscathed despite its high level of national debt and weak growth.
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