Spanish Bond Yields Drop as EUR 100B Infusion Expected (EWP)
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The iShares MSCI Spain Index (NYSE: EWP) could be headed higher again on Thursday, following news that Spain is about to receive a $123 billion (€100 billion) infusion after following European Central Bank (ECB)-imposed restrictions on bank lending.
According to Bloomberg, the ECB imposed limits on how much it would lend banks against government-guaranteed bonds.
Spain's Bankia will get the first round of funds, which includes a €30 billion tranche to be paid out first and “mobilized in any contingency."
On the news, Spanish 10-year bond prices rose, pushing yields down 5 basis points to 6.59 percent. Spanish bonds hit a record high of 7.75 percent on July 25th.
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According to Bloomberg, the ECB imposed limits on how much it would lend banks against government-guaranteed bonds.
Spain's Bankia will get the first round of funds, which includes a €30 billion tranche to be paid out first and “mobilized in any contingency."
On the news, Spanish 10-year bond prices rose, pushing yields down 5 basis points to 6.59 percent. Spanish bonds hit a record high of 7.75 percent on July 25th.
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