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Spain takes center stage with crucial bond auction; markets showing signs of optimism
MADRID (AP) ' Spain will be in the spotlight later Thursday when it auctions up to '2.5 billion ($3.3 billion) of its bonds, in a key test of investor confidence in the government's plans to get a handle on its debts.
Most interest will center on what interest rate the 10-year bond issue reaps. Over the past couple of weeks, Spain has become the epicenter in Europe's debt crisis, with investors becoming increasingly concerned over whether the new conservative government can push through its austerity and reform program at a time of recession and sky-high unemployment.
Earlier this week, the yield on Spain's ten-year bonds spiked above 6 percent, toward the levels that forced other euro countries, Greece, Ireland and Portugal, into seeking outside financial help.
Markets across were in cautiously upbeat ahead of this morning's auction.