Investors piled into deals for Spain and Italy on Wednesday despite the miniscule yields on offer, as the spectre of further easing of monetary policy looms large over the market.
Accounts put in about €54.5bn of combined orders for the two sovereigns on Wednesday. Spain’s 10 year transaction took the lion’s share of demand, with €31bn in the order book.
This is despite Spain’s debt yielding record low levels. Spanish sovereign 10 year debt was trading at 0.534% on