Investing.com - Spain saw borrowing costs fall at an auction of 12-month government bonds on Tuesday, as market sentiment continued to be underpinned by hopes that the worst of the crisis in the euro zone has passed.
Spain’s Treasury sold EUR3.25 billion worth of 12-month government bonds at an average yield of 1.472% earlier in the day, down from 2.556% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.21 times versus a "bid-to-cover" ratio of 2.46 in December.
Spain also sold EUR2.51 billion of 18-month debt at an average yield of 1.687%, down from 2.778% at a similar auction last month.
In total, Spain’s Treasury sold EUR5.76 billion of government debt, above the full targeted amount of EUR5 billion.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
The yield on Spanish 10-year bonds stood at 5.037% following the auction.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.03% to trade at 1.3377.
European stock markets were mixed. Spain’s IBEX 35 Index fell 0.3%, the EURO STOXX 50 was flat, France’s CAC 40 added 0.25%, Germany's DAX was little changed, while London’s FTSE 100 edged 0.1% higher.
Spain’s Treasury sold EUR3.25 billion worth of 12-month government bonds at an average yield of 1.472% earlier in the day, down from 2.556% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.21 times versus a "bid-to-cover" ratio of 2.46 in December.
Spain also sold EUR2.51 billion of 18-month debt at an average yield of 1.687%, down from 2.778% at a similar auction last month.
In total, Spain’s Treasury sold EUR5.76 billion of government debt, above the full targeted amount of EUR5 billion.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
The yield on Spanish 10-year bonds stood at 5.037% following the auction.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.03% to trade at 1.3377.
European stock markets were mixed. Spain’s IBEX 35 Index fell 0.3%, the EURO STOXX 50 was flat, France’s CAC 40 added 0.25%, Germany's DAX was little changed, while London’s FTSE 100 edged 0.1% higher.