Spanish government bond yields hit a four-year low on Wednesday (January 8). Currently, industry investors are generally optimistic that as economic growth accelerates, Spain's 2014 new debt issuance plan will be easily absorbed by the market.
Spain plans to issue 133.3 billion euros in medium- and long-term government bonds this year, higher than the 128.4 billion euros in 2013. This figure is largely in line with the expectations of some analysts, and many market participants believe that the auctions of these bonds will not encounter any obstacles, as the improved economic outlook has supported demand for the country's sovereign debt.
Current data shows that the Spanish economy is recovering. The service sector grew at its fastest pace in over six years last December, and the number of unemployed people decreased by 2.24%. In addition, expectations that the European Central Bank will maintain low interest rates for a longer period, or even cut rates further, have also supported the prices of higher-yielding government bonds in the Eurozone.