Reuters says Spain sold EUR 6 bln in bonds and bills in a direct placement to finance the FROB bank bailout mechanism, citing source.
Interesting that they did not conduct a typical auction process, but I guess it is good news that they were able to get the financing done but also a sign of nervousness within the Spanish treasury that they were unwilling to go to market in typical fashion. No word yet on the rate they had to pay.
As we said last week, If we were Spain, we’d be issuing bonds like crazy while yields are artificially low in anticipation of ECB bond buying.
