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The Kingdom of Spain exceeded its auction targets and paid a lower yield than last time. Spain is enjoying the non-downgrade from Moody’s and hope for lightweight funding solution.

The government raised 4.614 billion euros, above the expected 4.5 billion.

EUR/USD is struggling around the 1.31 line, still waiting for significant results from the EU Summit that commences today.

Yields for the benchmark 10 year bond hit 5.458, lower than 5.666% seen in the previous auction, and far better than yields of around 6.5% seen in the stormy days.

Spain also enjoyed lower yields on 3 year bonds: 3.227 instead of 3.676%, and on 4 year bonds: 3.977% instead of 4.603. The euro-zone’s fourth largest country is close to meeting all its annual bond auctions.

It’s important to remember that it enjoyed a good period also early in the year (thanks to the LTRO), and managed to cash in at that point as well.

With improved yields, Spain has less motivation to ask for aid.