SPANISH BOND AUCTION came close to failing (dollar, financial, money)

[SilverOne]

BREAKING NEWS: SPANISH BOND AUCTION FAILED


Spanish debt auction comes close to failure
By David Oakley

Published: May 18 2010 18:09 | Last updated: May 18 2010 18:09

Spain came close to its first debt auction failure on Tuesday, highlighting the funding problems for weaker eurozone economies.

The government’s difficulties in selling €6.44bn ($7.96bn) in one-year and 18-month bills sparked worries over its 10-year debt auction on Thursday.

Madrid had planned to issue €8bn, but only just attracted that amount of bids, with yields at record highs. This prompted debt managers to reduce the size of the sale by €1.56bn. Normally a government bill auction would be covered at least 1.5 times.

Steven Major, head of fixed income at HSBC, said: “The Spanish auction was very disappointing and does not bode well for further issuance. It’s becoming more apparent just how difficult it is for Spain, which is a big worry so soon after the launch of the international rescue package.

[HappyTexan]

The bond market has collapsed over there. Thanks for posting this.not being posted on our MSM sites.
Confidence is just not there..not even with the IMF "shock and awe" of big money.

The money is flying into gold and treasuries.

[SilverOne]

http://www.telegraph.co.uk/finance/f...-warnings.html


Foreign holders of Greek and Portuguese debt have seized on emergency intervention by the European Central Bank to exit their positions, leaving eurozone taxpayers exposed to the credit risk.


By Ambrose Evans-Pritchard, International Business Editor
Published: 6:57PM BST 17 May 2010

Comments 96 | Comment on this article
Euro,dollar - Banks dump Greek debt on the ECB as eurozone flashes credit warnings
Euro,dollar - Banks dump Greek debt on the ECB as eurozone flashes credit warnings Photo: AFP/Getty Images

The Bank of New York Mellon said its custodial data showed a "sharp acceleration" of net sales of debt from the two countries after the ECB began purchasing €16.5bn of bonds from southern Europe and Ireland in bid to halt market panic. "It rather suggests that investors leapt at the opportunity to clear their balance sheets of intolerable risk," said Neil Mellor, the bank’s currency strategist. "This leaves the ECB itself in an unpleasant situation since it now faces a deterioration in its own balance sheet."