Spain's Treasury said on Friday it would issue a 10-year bond with a 4.85 percent coupon maturing October 2020 on September 16, in addition to a 2041 bond with 4.7 percent coupon already announced. The government had planned to issue five regular bonds in the third quarter and a new 10-year syndicated bond.
Of these, it still needs to issue a 3-year bond, planned for August 5, a 5-year bond on September 2 and the 30-year on September 16. Spain's 10-year spread against the German bund expanded to its widest point in May at 238 basis points on concerns the government would struggle to repay the July redemption and could face a similar debt crisis to Greece. On Friday, the 10-year spread stood at 147 basis points as worries surrounding the country's financial health and the state of its banks eased.
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