Spanish yields on Wednesday dropped to their lowest levels over the last years as the European Central Bank (ECB) meets to announce new measures.
Local media reported that Spain's two-year bond interest rates dropped from 0.76 percent to 0.72 percent in early trading while the country's five-year bond interest rate fell from 2 percent to 1.93 percent.
Interest rates were in both cases at their lowest levels in history, according to the Spanish online economic newspaper El Confidencial.
Spain's 10-year bond interest rate fell from 3.50 percent to 3.44 percent to 2006 levels, while Spain's 30-year bond interest rate fell from 4.36 percent to 4.29 percent to 2009 levels.
Average interest rates on 30-year bonds since the euro was established stood at 5.10, which means current levels are below the average.
Spain's 10-year bond interest rate had reached 7 percent in 2012 and Spain's risk premium surpassed the 600-point mark that summer when rumors about Spain needing a sovereign bailout began.
Meanwhile, the IBEX-35 stock market in Madrid was rising at 0.17 percent reaching 10,126 points, while Spain's risk premium stood at 177 points.
In this context, it is expected that the auction to be held on Thursday by the Spanish treasury will be a success registering lower interest rates than in previous auctions. The treasury expects to place between 4 (5.48 billion U.S. dollars) and 5 billion euros on the market. ...