Spain March Foreign Portfolio Investment Outflow Most Since June

Spain faced the highest outflow of foreign portfolio investment in nine months in March.

Non-residents withdrew 14.1 billion euros ($18.3 billion) of stock and bond investments, according to data released today in Madrid by the Bank of Spain. That’s the most since June 2012 and the second outflow since July. In February, a net 1.1 billion euros left the country.

The nation’s current account showed a 1.39 billion-euro surplus as imports dropped “significantly” and the energy-linked deficit narrowed, the Bank of Spain said in an e-mailed statement. Exports grew “moderately” while tourism fueled a surplus in services, it said.

The yield on Spain’s 10-year benchmark bond rose six basis points to 4.42 percent at 12:59 am in Madrid, while the spread with similar German maturities widened 8 basis points to 2.95 percentage points. Spain’s 10-year borrowing costs have come down from a euro-era high of 7.75 percent in July, before the European Central Bank pledged to backstop the single currency.

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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