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Spanish shares extend gains, bond yields fall
June 5, 2012 / 8:21 AM / 6 years ago

Spanish shares extend gains, bond yields fall

LONDON, June 5 (Reuters) - Spain’s stock market extended gains on Tuesday, outperforming other major European bourses, while its sovereign bond yields fell, with investors betting on global stimulus measures and shrugging off gloomy comments from a Spanish minister.

The benchmark Spanish IBEX equity index was up 1.5 percent by 0809 GMT, outperforming a 0.6 percent increase on the Euro STOXX 50 and chiming in with a broad improvement in investor appetite for risk before a conference call of Group of Seven finance chiefs on the euro zone debt crisis.

Spanish 10-year government bond yields were down 1.8 basis points on the day at 6.397 percent. Yields briefly spiked after Treasury minister Cristobal Montoro said that at current borrowing costs financial markets were shut to Spain.

Madrid still plans to test the market on Thursday and issue of up to 2 billion euros of medium- and long-term government bonds.

“I don’t think markets are closed for Spain ... I think he meant to say something else,” BNP Paribas rate strategist Patrick Jacq said.

“If the recent bias on Spanish yields will go on further, especially for the five- to 10-year area at some stage it will be a big problem for Spain .. but so far it’s manageable.” (Reporting By Toni Vorobyova and Marius Zaharia, edoiting by Nigel Stephenson)

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