AUTOREFRESH 
Spain and Portugal make plans to tap the debt market next week
By Adam Button || February 10, 2012 at 20:06 GMT
|| 6 comments || Add comment
Portugal added 1-year bills to the scheduled 3 and -6-month bills on Wednesday due to “specific demand from investors”. Spain also just announced it will sell 3-year notes on Thursday.
Spanish 3s are yielding 3.3% compared to sub-3% last week.
Meanwhile, yields on the Portuguese bills due in Dec 2012 are at 4.8%. Interestingly, notes due just 10 months later, in Sept 2013 are yielding 12.7%. The market is pricing in some massive risks in that time period (possible) and/or the government believes the bonds are mispriced and hopes to fill the gap.
It’s hard to believe there are 800 bps or risk priced into those 10 months.
Both countries may be trying to top up the government coffers in case things take a turn for the worst.
Hi Adam,
with tool do you use for the graph published ? Thanks
That chart is from Bloomberg.
before russian’s defolt we saw same curve shape/
In June they have to repay principle and interest equal to 28% of GDP, so the market thinks they are fine until the (3M low) but worried after (2yr + 800bps)
It’s fascinating. The new bills they issue next will be due Feb 22, 2013, so that falls before that time. Amazing that the market is so worried about the repayments. Seems like 2s at 12.7% is a screaming buy but they said that about Greece too.
All the more interesting seeing as Bloomers reported that the Eurozone may change terms of Portugal’s bailout as well.