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Tension with Catalonia raises the cost of financing Spain and doubles the type of bonds to 5 years

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Tension with Catalonia raises the cost of financing Spain and doubles the type of bonds to 5 years

The IBEX 35 turns around, bounces 0.45% and returns to 10,000 points

The first Test of fire for Treasury after October 1 consultation in Catalonia has been settled with an increase in costs of financing for Spain, which have doubled in case of bonds with a maturity of five years.

The public body has managed to place today 4.598 billion euros between bonds and obligations to five and ten years of which 3.208 billion corresponded to bonds with maturity in 2022. The latter have multiplied by two interest to pay with respect to last auction held on September 7, when an average rate of 0213% was paid, compared to 0.530% that have reached this Thursday.

In 10-year obligations, Treasury has managed to place 1.86 billion euros at a marginal rate of 1.867%, a figure greater than 1.691% last September 21.

Investors have thus punished political tension stemming from conflict between central government and Generalitat. The uncertainty takes several days hitting Spanish economy in markets, causing a rise of risk premium over 132 points and dragging Ibex 35 to tail of European parquet.

The auction of today also put in circulation bonds to 10 years indexed to inflation, which have been paid rates of-0.052%, in this case yes below 0371% of last placement.

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