Skip to comments.Eyes on Spain as euro debt fears resurface
Posted on 04/04/2012 3:35:45 PM PDT by Signalman
NEW YORK (CNNMoney) -- The debt crisis in Europe may be making a comeback, with a renewed focus on Spain following lukewarm debt auctions.
The Spanish government sold 2.6 billion worth of bonds Wednesday, which came in at the lower end of the estimated range of 2.5 billion and 3.5 billion, analysts said.
Following the auction, the yield on 10-year Spanish bonds jumped to 5.6%, the highest level in nearly three months.
Spain's borrowing costs have risen recently despite a 27.3 billion austerity package announced by the government late last month.
Investors are worried that Spain will struggle to meet its 2012 budget deficit target as the nation's economy is expected to shrink 1.7% this year, according to analysts at Societe Generale.
"Such pressure on yields would undoubtedly revive the scenario in which Spain may become the fourth eurozone country to receive EU assistance," SocGen analysts wrote in a note to clients.
(Excerpt) Read more at money.cnn.com ...
"In addition, investors have been encouraged by the successful restructuring of Greek government debt."
Grease restructuring is still not a done deal at this date.
The part of socialist Grease restructuring that has been forced wiped out 75% of bondholders principal and, even then, extended maturities and reduced interest rates. Grease still has billions of sovereign debt, held internationally, due next month that is in limbo.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.