Spain Offers Premium to Sell 6 Billion Euros of Bonds

Spain offered a premium over its existing debt to sell 6 billion euros ($8 billion) of bonds as Europe’s sovereign deficit crisis pushes up borrowing costs.

The nation, which is planning a gross 93.8 billion euros of bond issuance this year, is selling the 10-year notes through a group of banks and canceled two auctions scheduled for Jan. 20, according to the Treasury’s website. The bonds will be priced to yield 225 basis points more than the swap rate, said two people familiar with the matter, which equates to about 12 basis points over Spain’s existing 4.85 percent securities due October 2020.