June 7 (Bloomberg) -- Spain sold 2.07 billion euros ($2.6 billion) of bonds, meeting its maximum target, as its 10-year borrowing costs rose.
Spain sold its benchmark 10-year bond at an average yield of 6.044 percent, compared with 5.743 percent at the last sale on April 19 and 6.14 percent on the secondary market before the auction. It sold bonds maturing in October 2014 at an average yield of 4.335 percent and October 2016 securities at 5.353 percent.
Demand for the benchmark debt was 3.29 times the amount sold, compared with 2.42 times in April. The bid-to-cover ratio for the 2014 securities was 4.26, compared with 3.28 on April 19, and rose to 2.56 for the 2016 debt from 2.46 the last time it was sold on April 4. It aimed to sell a maximum of 2 billion euros.
The sale came two days after Budget Minister Cristobal Montoro said the “door of the markets isn’t open to Spain” as he called for European institutions to help the nation shore up its lenders. As Spanish borrowing costs approach the 7 percent level that preceded bailouts in Greece, Ireland and Portugal, the Treasury increasingly depends on domestic banks.
The yield on Spain’s 10-year bond was unchanged at 6.144 percent at 10:50 a.m., compared with a euro-era record of 6.78 percent on Nov. 17. The spread with the same German maturities was at 4.78 percentage points, compared with a record 5.48 percentage points on June 1.
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