Spanish 30-year bond auction meets strong demand
A Spanish government auction of 30-year bonds has been met with a flood of demand.
On Tuesday, one of the lead managers in the syndicate managing the sale, Citi, announced that €25.8bn-worth of bids were received (including interest for €2.45bn from the joint lead managers themselves) for the €6.0bn of debt on offer, at a price of 105 basis points over mid-swap.
The day before, Spain's Treasury had moved to entice potential bidders, offering bigger allocations to those who bid before the price guidance for the auction, of 109bp over mid-swap, was released.
As some market commentary pointed out, thanks to recent strong demand, amid buoyant market conditions in the Eurozone, Madrid appeared on track to complete roughly a third of its programmed sales just half-way through the first quarter.
By 1512 GMT, the yield on the benchmark 10-year Spanish government bond was up by one basis point to 1.52% and that on 30-year debt was flat at 2.61%.