Investing.com - Spain saw borrowing costs ease slightly at an auction of 12-month government bonds on Tuesday, as investors looked ahead to a meeting of euro zone finance ministers later in the day in Brussels to discuss whether Greece can receive its next installment of bailout funds.
Spain’s Treasury sold EUR4.22 billion worth of 12-month government bonds at an average yield of 2.797% earlier in the day, down slightly from 2.823% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.1 times versus a "bid-to-cover" ratio of 2.71 in October.
Spain also sold EUR710 million of 18-month debt at an average yield of 3.034%, up from 3.022% at a similar auction last month. The bid-to-cover ratio stood at 5.70, compared to 3.04 at an auction last month.
In total, Spain’s Treasury sold EUR4.93 billion of government debt, above the full targeted amount of EUR4.5 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 5.93% following the auction.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.14% to trade at 1.2797.
European stock markets remained lower. Spain’s IBEX 35 Index fell 0.45%, the EURO STOXX 50 declined 0.3%, France’s CAC 40 dipped 0.4%, Germany's DAX eased down 0.1%, while London’s FTSE 100 edged 0.25% lower.
Spain’s Treasury sold EUR4.22 billion worth of 12-month government bonds at an average yield of 2.797% earlier in the day, down slightly from 2.823% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.1 times versus a "bid-to-cover" ratio of 2.71 in October.
Spain also sold EUR710 million of 18-month debt at an average yield of 3.034%, up from 3.022% at a similar auction last month. The bid-to-cover ratio stood at 5.70, compared to 3.04 at an auction last month.
In total, Spain’s Treasury sold EUR4.93 billion of government debt, above the full targeted amount of EUR4.5 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 5.93% following the auction.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.14% to trade at 1.2797.
European stock markets remained lower. Spain’s IBEX 35 Index fell 0.45%, the EURO STOXX 50 declined 0.3%, France’s CAC 40 dipped 0.4%, Germany's DAX eased down 0.1%, while London’s FTSE 100 edged 0.25% lower.