Spain sells EUR 5.838bln vs exp. EUR 5-6bln 2.35% 2029, 3.00% 2033, 3.20% 2035 Bono and EUR 0.646bln vs exp. EUR 0.25-0.75bln 0.70% 2033 IL

Spain's recent bond auction saw strong demand, exceeding expectations for both general and inflation-linked bonds, which indicates a healthy appetite for sovereign debt.

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Spain sells EUR 5.838bln vs exp. EUR 5-6bln 2.35% 2029, 3.00% 2033, 3.20% 2035 Bono and EUR 0.646bln vs exp. EUR 0.25-0.75bln 0.70% 2033 IL

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  • 2.35% 2029: b/c 2.42x (prev. 1.51x) & average yield 2.341% (prev. 2.342%)    
  • 3.00% 2033: b/c 1.81x (prev. 2.08x) & average yield 2.905% (prev. 2.94%)    
  • 3.20% 2035: b/c 2.42x (prev. 1.92x) & average yield 3.223% (prev. 3.199%)    
  • 0.70% 2033 IL: b/c 2.39 (prev. 2.27x) & real yield 1.078% (prev. 1.271%)
Context
The higher bid-to-cover ratios, particularly for the 2029 and 2035 bonds, suggest investor confidence, though slightly rising average yields signal some caution around future interest rate moves. This could suggest a stabilizing sentiment in the Eurozone fixed income markets, impacting broader euro rates and risk sentiment.

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