Spain Borrowing Cost Rises as Demand Drops at Bond Sale
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Spain sold 2.6 billion euros ($3.4 billion) of bonds, near the minimum planned, and borrowing costs rose as the impact of European Central Bank’s emergency lending waned. Bonds and the euro declined.
The Treasury auctioned bonds maturing in January 2015 at an average 2.89 percent, up from 2.44 percent on March 15, while bonds due in October 2016 yielded 4.319 percent, up from 3.376 percent on March 1. Securities maturing October 2020 were sold at 5.338 percent, Madrid-based Bank of Spain said today. The Treasury had set a range of 2.5 billion euros to 3.5 billion.