Spain Borrowing Costs Drop in EU803 Million Surprise Sale

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Spain’s borrowing costs fell at an extraordinary auction as the euro area’s fourth-largest economy retains investors’ confidence amid market turmoil in Italy.

The Madrid-based Treasury sold 803 million euros ($1.04 billion) of bonds maturing in 2029 to yield 5.224 percent, downBloomberg Terminal from 5.787 percent on Feb. 7, 2040 bonds at a yield of 5.434 percent, downBloomberg Terminal from 5.893 percent on Dec. 13, and 2041 bonds at 5.432 percent, downBloomberg Terminal from 5.696 percent on Jan. 17. No target was set for today’s sale, which was limited to primary dealers.