Spanish Sovereign

Italy’s borrowing costs dropped across the curve at an auction on Friday, although its yields at the longer end are still some distance from the euro-era lows hit earlier this year.

Greece’s part in the eurozone sovereign debt crisis has always been secondary to the potential for disaster in larger countries like Spain. Now the latter country could be just months away from breaking up and a huge debt shock. Why does no one care?

Spain’s 10 year borrowing costs rose at an auction on Thursday to more than double their low for the year so far.

Spain’s 10 year borrowing costs dipped below 2% on Thursday for the first time since May, as the sovereign approached the three quarter mark on its funding schedule for 2015.

Spain slashed its one year borrowing costs at auction on Tuesday but the yield was still higher than the lowest level the sovereign has achieved so far this year.

Spain could be set to record its lowest borrowing costs at a 10 year auction since May if its yields hold steady this week, after its levels tumbled in secondaries on Monday.

Spain raised just shy of its maximum target at auction on Thursday, as polls this week in Spain suggested support is declining for anti-austerity party Podemos ahead of elections later this year.

Spain’s three month borrowing costs dipped back into negative territory and to a record low on Tuesday, as the eurozone periphery enjoyed a strong run of trading before Portuguese auctions later this week.

Italy’s medium to long term yields fell at auction for the first time in four months on Monday, as Greece struck a deal with its creditors — but there could be even greater gains ahead for the eurozone periphery.

The threat of contagion from Greece stumbling towards a eurozone exit has started to re-emerge as a threat to other periphery countries, as issuers this week sold paper at yields last seen nearly a year ago.

Spain’s 10 year borrowing cost reached its highest level at auction in almost a year on Thursday, despite the sovereign’s yields falling in secondaries after hitting a year-to-date high on Monday.

Spain’s short term borrowing costs bounced out of negative territory on Tuesday, as the country readied itself for a bond auction amid a tricky euro market later in the week.