The announcement on Tuesday of a syndicated offering of a 15-year bond by Spain sent markets off with unease, driving yields up and putting pressure on other peripheral markets such as Portugal, which plans a bond auction of its own on Wednesday.
According to Reuters, the announcement of the syndication deal sent yield spreads widening, with Spain 216 basis points out from the German Bund. According to an unnamed trader quoted in the account, "With the news of the syndication we're seeing Spain go wider and there's a general soft feeling in the market toward the periphery."
That was borne out in the pressure on Italian and Greek debt, which also saw their yield spreads widen, and on Portuguese bonds, which courted record territory in advance of a planned Wednesday auction.
Monday had already been a tough day for the peripheral euro zone debt market after Greece’s credit rating was slashed by three slots by Moody’s and Portuguese yields saw euro-era highs. Tuesday continued the theme as Thomson Reuters service IFR said in the report that the syndicated Spanish bond would be some 15-20 basis points higher than the 4.65T% July 2025 bond.