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Spain Pays Too Much For Capital, Again: Yield At 5.187%

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By Douglas A. McIntyre Published
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Spain’s treasury sold 3.75 billion euros of three tranches of paper,  at the high end of the targeted 2.75-3.75 billion euro range. However, the average yield on the April 30, 2015 bond was 5.187%, up from 3.639% when it was offered last on Oct.6. France will also raise money today. It remains to be seen how much its premium will rise compared to last month

Italy and even France have had related trouble because what they must pay on sovereign paper rises quickly. There is concern that these interest rates cannot be sustained which means that the ability of these sovereigns to address deficits must come with proof of severe austerity measures. These may take months or longer to put in place, further increasing the skepticism that southern European nations can avoid default.

The worry is buttressed by news that Euro region unemployment reached 10.3% last month. In Spain the figure was over 22%. Stimulus would be needed to reverse these fortunes, almost certainly. And not capital is avaiable from national government for that

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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