Bloomberg News

Spanish Bonds Drop as Spokesman Sees Debt Sales for Bank Funding

May 29, 2012

Spain’s government bonds declined after a spokesman for the economy ministry said the nation’s preferred option for raising funds to recapitalize Bankia group is via debt markets.

The yield on five-year securities climbed eight basis points to 5.82 percent at 11:04 a.m. London time. The 10-year rate climbed three basis points to 6.51 percent.

The price of Spanish bond futures for September, which began trading today, fell to 95 from as high as 95.59 earlier today.

Spain considers that using treasury bonds instead of cash to recapitalize Bankia is now a “marginal” option, the spokesman said.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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