Spain Sells Bonds as Deepening Debt Crisis Threatens Demand

Two days after a senior government official said Spain’s access to debt markets was closed, the country will try to sell as much as 2 billion euros ($2.5 billion) of bonds at interest rates that will probably be higher than at its last auction of similar maturities.

Budget Minister Cristobal Montoro said June 5 that European institutions should help come up with funds to shore up the nation’s lenders as “the door of the markets isn’t open to Spain.” The Treasury is selling two-, four- and 10-year debt, with France auctioning as much as 8 billion euros of securities.