Thursday, December 16, 2010

Spain's borrowing costs approach the insupportable.

The Guardian reports the results of today's bond sale by Spain as follows:

There was reasonable demand for the 10-year and 15-year bonds, covered 1.7 times and 2.5 times respectively. But the yield for the 10-year gilt rose from 4.615% at the last auction to 5.446%, and on the 15-year bond from 4.541% to 5.953%. 

Almost 6% for 15 years must pretty much say it all for the prospects of a quick Spanish recovery!


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