Spanish Treasury cancels August 18 bond sale

, Comments 0 comments

The Spanish Treasury announced on Thursday it had cancelled a bond auction scheduled for August 18, as the country came under escalating market pressure.

"The Spanish Treasury has decided to follow the precedent of the previous two years and not summon a long-term auction in August, therefore there will be no auction on August 18th," it said in brief statement on its website.

The August 18 sale had been on the calendar on the Treasury's website since the beginning of the year.

The Treasury said it would launch a new five-year benchmark on September 1.

On Wednesday, Finance Minister Elena Salgado had ruled out any cancelation of bond sales.

She said Spain's government had covered two-thirds of its financing needs for this year but said it was "good to show again Spain's capacity to go to the markets."

Spain endured a test of fire on the bond markets Thursday, raising 3.3 billion euros ($4.7 billion) but paid a hefty rate of 4.813 percent, up from 4.037 percent previously, in the midst of a growing eurozone debt crisis.

European stock markets closed sharply lower on Thursday as eurozone woes and more weak US data sparked concern that the world could be heading for another sharp downturn.

© 2011 AFP

0 Comments To This Article