Spain will sell up to 3.5 billion euros in bonds on Wednesday in an auction that should give clues on whether it can avoid the bailout contagion that has engulfed the much smaller economies of Greece, Ireland and Portugal.
Growing talk of Greek debt restructuring, despite official denials, has battered the bonds of financially weak euro zone members in the past few days, pushing Portugal’s yields to new euro lifetime highs and Spain’s close to record levels.
While Portugal has little to prove with a relatively small sale of short-term T-bills, Spain’s auction of 2.5 billion to 3.5 billion euros in 10-year and 13-year bonds is being seen as a test of whether the country can decouple Full Forex News