Spain treasury announced today it will issue about €242bn of debt this year as it plugs a still-hefty budget deficit, as it continues to service its mounting government debt pile, currently close to 94% of GDP
The Spanish treasury expects €133bn of the debt issued this year to be medium- and long-term bonds.
Recent improvements in unemployment, PMI, exports and increased services activity had led the 10 bond yield to fall slightly. All this optimism could be dashed however if these trends are not sustained.
This new debt will bring the countries debt mountain to and possibly beyond 100% of it’s GDP. 😯