A surprise large scale bond auctions has helped Italy and Spain, both of which are facing difficult position due to the ongoing debt crisis, to improve their standing in the repayment ability.

Italy sold a record _18 billion worth of bonds, which is satisfyingly enough to pay its debt for the remaining year. Spain raised some _4.6 billion in bonds soon after its rating was placed just above the junk status by a credit rating agency. Several investors look at bond indexes to determine investments and a further downgrade to junk could spark a selling by investors in the Spain bond market.

The decision by Moody's for not giving a junk status to the country and subsequent successful auction might help Spain improve its financial position.

Menwhile, the demand for the new BTP Italia bond for retail investors touched 10.2 billion euros after three days of sale. The total orders on Wednesday reached 5.1 billion euros after totalling 5.07 billion euros during the first two days. BTP Italia has a minimum coupon of 2.55 percent and it will pay an interest based on inflation index measuring consumer prices net of tobacco in Italy.