MADRID, May 17 (Xinhua) -- The Spanish Treasury on Thursday was able to place treasury bonds with a life of three and four years on the market.
The bond issue took place in the midst of the current uncertainty about the future of the Euro and of several EU countries, including Spain to meet their obligations in reducing public debt
This Spain's risk premium had climbed past the 500 mark to briefly stand at 507 points, while the premium had opened on 482 points on Thursday morning.
Given the current economic climate on a day when shares in Spain's fourth biggest bank Bankia, continue to collapse following last week's new of government international, the Treasury was forced to offer an interest rate considerably higher than in its previous bond issue.
At the time of the auction further worries about Greece had again pushed Spain's risk premium above the 500 point mark, although that rise turned into a slow fall so that bt 13.00 hours the risk premium stood at 487 points.
Meanwhile the Madrid stock market had fallen by 1.56 percent between the opening of the session and 1pm and was hovering just above the 6,500 point mark at 6,508.4
The Spanish Treasury plans a further issue of three and six month bonds on May 22nd, after which point there will be no further issues until June 7.