Spain Forced to Pay Higher Premiums to Attract Buyers

Within hours of claiming that it was in significantly better shape than Greece and would therefore not need a bailout, Spain was forced to increase premiums in order to auction 5.2 billion euros (US$6.4 billion) in 12- and 18-month T-bills. Rumors persist that Moody’s is re-evaluating Spain’s AAA rating especially in light of yesterday’s sudden downgrading for Greece.

Last Friday Spain’s economy ministry denied it had made a request for economic aid from the EU, after a German newspaper report that Brussels was preparing to activate a package in case Madrid asked for it.

Source: Reuters

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