Spanish Borrowing Costs Surge as Demand Weakens at Debt Sale
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Spain sold 2.98 billion euros ($3.66 billion) of notes, in line with its maximum target, and its borrowing costs surged as demand for the securities weakened. The country’s bonds fell after the sale.
The Madrid-based Treasury sold notes due in 2014 at an average yield of 5.204 percent, compared with 4.335 percent when they were last sold on June 7. It sold five-year notes at 6.459 percent, compared with 6.072 percent on June 21 and seven-year securities at an average yield of 6.701 percent.