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Bond yields ease slightly as Spain sells debt; 10-year yield at 5.20%

Published 02/21/2013, 04:57 AM
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Investing.com - Spain saw borrowing costs fall at an auction of ten-year government bonds on Thursday, as traders continued to monitor steps in handling the euro zone's ongoing debt crisis.

Spain’s Treasury sold EUR2.568 billion worth of ten-year government bonds at an average yield of 5.202% earlier in the day, down from 5.29% at a previous auction.

In addition, Spain sold EUR1.12 billion of two-year debt at an average yield of 2.54%, down from 2.823% at a similar auction last month. Madrid also sold EUR548 million of six-year debt at an average yield of 4.275%.

In total Spain’s Treasury sold EUR4.22 billion worth of debt, short of the full targeted amount of EUR4.5 billion.

The yield on Spanish 10-year bonds stood at 5.20% following the auction.

Meanwhile, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.66% to trade at 1.3196.

European stock markets remained sharply lower following the auction. Spain’s IBEX 35 Index plunged 1.25%, the EURO STOXX 50 lost 1.65%, France’s CAC 40 dropped 1.6%, Germany's DAX slumped 1.5%, while London’s FTSE 100 retreated 1.35%.

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