The markets are waiting in nervous anticipation for the latest round of Spanish government debt auctions, which the Spanish central bank says will take place today and tomorrow.
Spain is today looking to borrow sums due for repayment in three and six months, with a 12-month debt auction due on January 19.
Tomorrow, however, will see the country’s first proper bond auction of the year. Spain is looking to borrow €2-3 billion (£1.7-2.5 billion) due for repayment in five years, with annual interest payments of 3.25%.
On January 21 it will hold a further bond auction, with two auctions a month for the next year. (article continues below)
Investors are afraid Spain will encounter difficulties with its shorter-term debt auctions, as Portugal has done with its six-month and four-year debt auctions this week and last.
The European Central Bank intervened in the markets earlier on Monday after fears over the first Portuguese debt auction of the year.
The auction helped push Portuguese yields beyond what the government considers to be danger levels of 7%.