Spanish markets restrained after bond auction

<p>Markets in Spain are not getting carried away after the latest round of bond buying. </p>

Spanish markets remain restrained despite the country selling €4.8 billion (£3.8 billion) of bonds in the latest round of auctions.

This represents the most it has shifted since January, but is not enough to bring about any increases in its indices.

As of 11:24 BST, the IBEX 35 is down 83.30 points – or by 1.03 per cent – and the Madrid Stock Exchange General has dropped by 8.02 points, which represents a 1.01 per cent fall.

Harvinder Sian, a fixed income strategist at Royal Bank of Scotland in London, told Bloomberg that a bad auction could force the Spanish prime minister Mariano Rajoy to seek a bailout.

"The result is decent, but it doesn't follow that the market will react positively as it pushes back the timetable," Mr Sian stated.

If Spain's bond-buying rates rise much more, it might have to seek assistance from the European Central Bank.

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