This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12180272

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Spain sees strong demand in latest bond auction Spain sees strong demand in latest bond auction
(40 minutes later)
Spain has raised 3bn euros ($3.9bn; £2.5bn) in an auction of five-year government bonds.Spain has raised 3bn euros ($3.9bn; £2.5bn) in an auction of five-year government bonds.
The average yield on the bonds was 4.542%, which was nearly one percentage point higher than the rate reached in the last auction in November.The average yield on the bonds was 4.542%, which was nearly one percentage point higher than the rate reached in the last auction in November.
However, analysts had feared the yield would be even higher.However, analysts had feared the yield would be even higher.
The debt sale, which follows a similar auction by Portugal on Wednesday, is soothing fears over the eurozone's ability to service its debts.The debt sale, which follows a similar auction by Portugal on Wednesday, is soothing fears over the eurozone's ability to service its debts.
Michael Lister, strategist at West LB in Dusseldorf, said: "The figures look really good, it's the perfect sequel to the Portugal auction yesterday."Michael Lister, strategist at West LB in Dusseldorf, said: "The figures look really good, it's the perfect sequel to the Portugal auction yesterday."
Spain's finance minister, Elena Salgado had said ahead of the sale that the Portuguese auction had helped prepare the ground for its own one.Spain's finance minister, Elena Salgado had said ahead of the sale that the Portuguese auction had helped prepare the ground for its own one.
At the end of last year, worries over the high level of debt held by many European governments put pressure on those countries to pay more to attract investors to lend to it.At the end of last year, worries over the high level of debt held by many European governments put pressure on those countries to pay more to attract investors to lend to it.
The countries with the biggest doubts over their economic health - Greece and the Irish Republic - ended up needing huge support from both the European Union and the International Monetary Fund.The countries with the biggest doubts over their economic health - Greece and the Irish Republic - ended up needing huge support from both the European Union and the International Monetary Fund.
Confidence
Portugal and Spain were seen as the next potential weak areas in the eurozone.Portugal and Spain were seen as the next potential weak areas in the eurozone.
However, the two bond sales this week suggest that investors are somewhat more confident about the countries' ability to pay their debts.However, the two bond sales this week suggest that investors are somewhat more confident about the countries' ability to pay their debts.
Spain, the fourth-biggest economy in the eurozone, has cut spending and introduced economic reforms.Spain, the fourth-biggest economy in the eurozone, has cut spending and introduced economic reforms.
Italy, which is seen as stronger than both Portugal and Spain, also successfully raised 6bn euros in the bond markets on Thursday.
But doubts remain over the long-term structural problems in the eurozone.
Neil MacKinnon, global macro-strategist at VTB Capital, said: "As of today, the markets have breathed a sigh of relief but underlying issues remain unresolved in the absence of a more coherent policy to deal with potential debt restructuring."
There is growing speculation that eurozone finance ministers, who meet in Brussels next week, will discuss increasing the size of the bail-out fund, a move designed to reassure investors about the stability of the 16-nation bloc.
European Union leaders have called for member states to put more money into the fund.
European Commission President Jose Manuel Barroso said the European Financial Stability Facility needed to be extended from its current 440bn euro ($571bn; £366bn) level.