Spain Raises

Arthi Gupta
18 Dec, 2012
New York City

The European indexes gained on positive developments in fiscal cliff talks. Spain raised

[R]2:15 PM Frankfurt – The European indexes gained on positive developments in fiscal cliff talks. Spain raised €3.52 billion and Greece sold €1.3 billion of bonds in an auction today. Nielsen agreed to acquire Arbitron.[/R]

The European indexes edged higher as U.S. lawmakers inch closer to a resolution. Investors are optimistic after talks between U.S. House Speaker John Boehner and President Barack Obama made some progress.

The European Central Bank President Mario Draghi said that the establishment of the Single Supervisory Mechanism will contribute to restoring confidence in the banking sector across the euro area. Draghi reiterated that economic weakness in the euro area is to extend into next year with a very gradual recovery in the second half of the year.

In Paris trading, the CAC-40 Index declined 0.83 or 0.02% to 3,637.16 and in Frankfurt the DAX Index edged higher 31.46 or 0.4% to 7,636.36.

The yields on Spain’s benchmark declined six basis points to 5.37%. Italian 10-year yields dropped five basis points to 4.51%.

Spanish, Greek Bond Auctions

Spain raised €3.52 billion in an auction of 84- and 182-day bills today at lower yields.

Spain sold three-month bills at an average yield of 1.195% compared to an average yield of 1.254% at a previous auction on November 27.

The country also six-month bills at an average yield of 1.609% compared with 1.669% last month.

Separately, Greece sold €1.3 billion of three-month bills at an average yield of 4.11%, down from 4.2% at the previous auction on November 13.

Nielsen to Acquire Arbitron

Nielsen Holdings N.V. agreed to acquire Arbitron Inc., a media and marketing research firm.

Nielsen agreed to acquire all of the outstanding common stock of Arbitron for $48 per share in cash, representing a premium of approximately 26% to Arbitron’s closing price on December 17.