Spain to Sell Government Bonds Amid Systemic-Risk Threat
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Spain today plans to sell as much as 4 billion euros ($5.5 billion) of bonds, two days after Italy’s borrowing costs surged at a bill auction and as Greece’s slide toward a possible default roils global markets.
“Lower demand is likely to push up rates as systemic risk dominates the markets,” said Fadi Zaher, a fixed-income strategist at Barclays Wealth in London. “The European Central Bank credit card is running out, the involvement of private investors in Greece remains hanging in the air and euro-zone leaders are showing no unity.”