In a Thursday bond auction, yields rose for Spain, Portugal and Italy as investors took on 2.4 billion euros in 10-year and 15-year bonds.
Traders said that the auction was smooth amid overall light trading, although investors required a high yield that revealed their nervousness over the state of Spain’s economic health, according to a Reuters report. A Paris-based trader at a major investment bank said that the yield widened from six to eight basis points just after the auction, something he said was common in Spanish auctions.
Average yields for Spain were between 80 and 140 basis points higher than its bonds offered in October and November sales, and on Wednesday the10-year yield was up more than 20 basis points in December. More than 70% of the bidders, it was said, were non-resident investors.