Spanish Bond Sale Today- Yields 400% Higher Than Germany

[Realistbear]

http://www.bloomberg.com/news/2010-12-02/spain-bond-sale-to-gauge-investor-demand-after-surge-in-yield-euro-credit.htmL

Spain Bond Sale to Gauge Investor Demand After Surge in Yield: Euro Credit

By Anchalee "Anchee" Worrachate and Emma "Emerline" Ross-Thomas - Dec 2, 2010 12:00 AM GMT

Spain will test investor sentiment today for the first time since its 10-year bond yield rose to the highest in a decade following the bailout of Ireland.

Spain plans to sell 1.75 billion euros ($2.3 billion) to 2.75 billion euros of three-year notes, with existing debt yielding 4.06 percent, almost

four times German securities of similar maturity.

With Spain’s borrowing costs surging and the country fully funded this year, Finance Minister Elena Salgado said Nov. 26 the Treasury would offer less than the 4 billion- euro maximum sold at previous auctions.

The ECB might buy some to keep the Spanish plate spinning for a few more days.

[copydude]

Spain plans to sell 1.75 billion euros ($2.3 billion) to 2.75 billion euros of three-year notes, with existing debt yielding 4.06 percent, almost four times German securities of similar maturity.

They'll get round to Germany eventually, don't worry. There won't be an EU country left with any liberal laws or state assets by the end of 2011.

[The Spaniard]

There won't be an EU country left with any liberal laws or state assets by the end of 2011.

If you give away the power to control the quantity of money to commercial interests, eventually you will lose any semblance of democracy or sovereignty.

It's time to consign to history the present rent-a-currency financial enslavement and organize our own debt-free, publicly isssued means of exchange.

http://www.positivemoney.org.uk/

[Realistbear]

Natsuko Waki, 8:51, Thursday 2 December 2010

LONDON (

Reuters

) - World stocks rose for a second straight day on Thursday while the euro sat on the previous day's gains as expectations grew the European Central Bank might deliver measures to alleviate worries over euro zone debt.

The euro posted its biggest one-day rise in more than a month on Wednesday while yield spreads of peripheral issues over German bunds tightened as hopes grew for

decisive steps to stop the crisis from spreading to larger economies such as Spain

.

Analysts cautioned there was scope for disappointment, saying the

ECB was unlikely at this stage to expand its bond purchase programme

.

All a storm in a coffee mug eh?

Edited December 2, 2010 by Realistbear

[Realistbear]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8174831/Spain-and-Ireland-turn-to-privatisation.html

Financial Crisis

Spain and Ireland turn to privatisation

Spain and Ireland are set to launch large-scale privatisation programmes as they fight to preserve market faith in their turnaround plans.

..../

Speculation had grown over the last week that the European Central Bank (ECB) was considering taking drastic steps to shore up market confidence in the single currency, with rumours spreading on Wednesday that the ECB had already begun buying Irish bonds to stabilise what had looked to be weakening faith in their value.

A good way to buy some time.

[Realistbear]

FWIH the bond sale was a non-event. Crisis past.

[mattyfc]

More bad employment news for spain:

http://online.wsj.com/article/SB10001424052748703377504575650032120990398.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Spanish Labor Ministry said registered jobless claims rose by 24,318, or 0.6%, to 4.1 million in November from October. In annual terms, jobless claims were up 6.2%.

Manufacturing PMI showing 0 growth last month released yesterday, from the sector that is supposed to be powering the recovery. The country is back in recession already I think.

Time can be bought with QE, massive bond purchases. Eventually the country will collapse unless a way back to growth and job creation is found soon, the eurozone will follow with it.

[Trampa501]

More bad employment news for spain:

http://online.wsj.com/article/SB10001424052748703377504575650032120990398.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Manufacturing PMI showing 0 growth last month released yesterday, from the sector that is supposed to be powering the recovery. The country is back in recession already I think.

Time can be bought with QE, massive bond purchases. Eventually the country will collapse unless a way back to growth and job creation is found soon, the eurozone will follow with it.

Misreading the facts? The figure is seen as positive - November is normally a very bad month - and many are claiming the jobs market is now going to pick up based on that figure. Exports are rising (particularly to Spain's biggest export market - Germany), and the new measures to help small and medium sized companies can only help the recovery. Yes these are difficult times, but if they were half as bad as the doomsayers on this board claim, the Euro would already have lost half its value and Spain would not have been able to pay 3.72% for its bonds today - you wouldn't get them at 15% if you were held to be a high risk.