Spanish two-year notes pared a decline after the nation sold 2.5 billion euros of securities due in 2015 and 2016.
The two-year note yield was three basis points higher at 4.13 percent as of 10:06 a.m. London time, after rising as much as 11 basis points, or 0.11 percentage point, to 4.21 percent.
Spain sold 1 billion euros of 4 percent notes due July 2015 at an average yield of 4.88 percent, up from 4.04 percent at a previous auction of the same securities on May 3. Investors bid for 3 times the amount of notes allotted, compared with a so-called bid-to-cover of 2.88 times on May 3.
The nation also sold notes maturing in January 2015 and April 2016.