Spain has been reported to sell seven billion Euros of a new benchmark 10-year bond through banks. For the first time in three years, the nation auctioned 12-month bills at a yield of less than one percent.
A person, with knowledge of the deal, said that the 10-year sale attracted bids that exceeded 21 billion Euros and the bonds were sold to fetch 4.452%. The person asked not to reveal his name as they are not authorized to speak about it.
Spain issued seven billion Euros of securities maturing in January 2023 at a yield of about 5.4% in a similar sale on Jan 22.
In an auction in Madrid, Spain crossed its aspired target. After there was fall in its borrowing costs, this is a pleasing thing to witness. It appears that Spain is benefiting from the surging confidence in the euro area's fourth-largest economy.
The European Commission has predicted that the country's public debt burden will cross the euro region's average next year for the first time in the currency's history. European Commission has said that Spain's request for two more years to handle the largest budget deficit in the European Union is significant and reasonable.
Recent report by Telefonica SA (TEF), Spain's biggest telephone company states that the first-quarter profits for it have missed the expert's expected returns. It exhibited a decline of 1.3% to 11.14 euros at 9:34 a. m. in Madrid. Latin America and Europe saw a plunge in sales by 16%.
Experts have explained that the competition was responsible for the plummeting sales for the company. The completion has been widespread, all across Latin America and Europe.
With an intention of reduction in youth unemployment and to speed the efforts in banking reforms so as to stabilize the financial condition of Europe, the premiers of Spain and Italy joined hands so that they can focus more on encouraging economic growth rather than focusing just on reduction of debt.
As per the European Commission predictions, it has been revealed that Spain will not be able to accomplish its deficit target for 2014 budget. The Commission has affirmed that Spain is expected to have 6.5% GDP, which will get stretched to 7% by 2014.
While citing reasons for missing the deficit target by a wide margin, the Commission said that Spain's economy is not showing robust growth. Moreover, the budget-tightening measures, which the country was adopting for time being, have also expired.
If Spain's present condition is assessed then it will be found that the country is in deep trouble. It has suffered major setback in financial sector.
It has been found that Spain's unemployment rate has reached at 27% for entire population and 52% for young people. Among some other problems is rise in suicide rate of people, who are excluded from their homes, as they have been unable to pay rent or mortgage amount.
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