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Spanish debt sale fuels crisis gloom

Tuesday, November 22, 2011 - 01:57

Nov. 22 - Spain had to pay the highest amount to sell its debt in 14 years in the first bond auction since Sunday's election, a sign the People's Party victory has done little to calm investors' nerves, as EU Commissioner Olli Rehn warns euro zone members to stick to the bloc's rules. Joanna Partridge reports.

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Spain has paid the highest amount to sell its debt in 14 years in the first bond auction since Mariano Rajoy resoundingly won Sunday's election. Its Treasury sold almost 3 billion euros of 3 and 6-month bonds at more than five percent. The high yield is a sign the centre-right People's Party's victory has done little to calm investors' nerves. Will Hedden's a Sales Trader at IG Index. SOUNDBITE: Will Hedden, Sales trader at IG Index, saying (English): "The incoming Spanish Prime Minister summed this up yesterday, he only actually had four points, but he said his enemies, there aren't any enemies other than unemployment, the deficit, excessive debt and economic stagnation." Rajoy and Europe's other new leaders certainly have their work cut out. As protesters hit the streets once again in Athens, Greece's new Prime Minister Lucas Papademos met with the head of the Eurogroup Jean-Claude Juncker to discuss when Greece will get the next instalment of its EU / IMF bailout. And Italy's technocrat Prime Minister Mario Monti travelled to Brussels to meet EU Commission President Jose Manuel Barroso and EU Council President Herman Van Rompuy to discuss the fiscal reforms Italy needs to get its debt under control. Amid the talks - Olli Rehn the EU Commissioner for Economic and Monetary Affairs - warned euro zone members they need to stick to the bloc's rules. SOUNDBITE: EU COMMISSIONER FOR ECONOMIC AND MONETARY AFFAIRS, OLLI REHN, SAYING (English): "We cannot afford to tolerate a breach of jointly-agreed rules by any member state anymore. We have seen only too concretely that it happens at the cost of other member states in the recent sovereign debt crisis." Europe's new leaders may want to stick to these targets, but some analysts say the debt crisis is now beyond the control of individual countries. Joanna Partridge, Reuters

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Spanish debt sale fuels crisis gloom

Tuesday, November 22, 2011 - 01:57