Just after a day when a Spanish minister said that the country was being disconnected from the markets, Spain observed a great demand when it sold 2.1 billion euros of middle and long-term debt. Thus, the country has passed a vital test on whether it can still draw the investors’ attention or not.
The demand in debt sale was a great relief to a market that was expecting a policy regarding the banking problems of the country and of future economical stimulus. The demand was great in the sale of two- four- and ten-year debt. The auction was relatively small but could draw enough appetite.
According to expert analysts, this auction was an indication to Spain’s capability of raising funds in commercial markets. However, worries were still there regarding the recapitalization of the poor bank sector. Moreover, experts opined that Spain’s weak economy and struggle with high unemployment could demoralize the investors.
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