Today’s Spanish bond auction is complete and while not technically a failure, the results were far from good, and indicate a continued contagion of the southern Eurozone debt crisis. The results:
- Spain sold €1.2 Billion in 2 year bonds which priced at a 3.463% yield with a bid to cover of 3.28
- Spain sold €1.42 Billion in 10 year bonds which priced at a 5.743% yield with a bid to cover of 2.42
Those who took down the offering are already underwater, as the 10 year has already sold off to 5.927%.
While a 5.743% yield may not seem like a complete failure, please keep in mind that a vast majority of the auction was monetized by the ECB.
QE must and WILL continue to INFINITY….AND BEYOND!!!