MOSCOW, June 7 (RIA Novosti)
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Spain's Finance Ministry succeeded in placing $2.074 billion euros worth of medium- and long-term bonds on Thursday, in a sale seen by market watchers as a crucial test of its ability to raise capital, The Daily Telegraph reported.
Demand was strong for the bonds, but rates were high again, the Telegraph said.
Spain sold 638m euro of two-year bonds at a yield of 4.335 percent, up from 3.463 percent, 825m euro of four-year bonds at a yield of 5.353 percent, up from 4.319 percent, and 611m euro of 10-year bonds at a yield of 6.044 percent, up from 5.743 percent.
"Although the yield on the 10-year is just a tad below secondary market levels, these are prohibitive rates which underscore the dramatic deterioration in Spain's perceived creditworthiness," Nicholas Spiro of Spiro Strategy told the Daily Telegraph.
The sale takes place against the background of a looming crisis over debt in Spanish banks. Spanish politicians have tried hard to avoid asking for an international bailout, which would likely be accompanied by strict conditions and be politically unacceptable.
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