Investing.com - Spain saw borrowing costs climb higher at an auction of government debt on Thursday, ahead of a critical European Central Bank policy meeting later in the day, but the yield on the country’s 10-year bonds eased back to an intra-day low following the auction.
Spain successfully auctioned EUR3.13 billion of government bonds, having set a targeted range of between EUR2 to 3 billion.
Spain’s Treasury sold EUR1.05 billion of 10-year bonds at an average yield of 6.64%, slightly up from 6.43% last month.
Demand was lower than the previous auction, with bid-to-cover ratio at 2.4 compared to 3.2 a month earlier.
Spain sold EUR1.02 billion of four-year bonds at an average yield of 5.97%, up from 5.35% in June.
Spain also sold EUR1.06 million of two-year bonds at an average yield of 4.77%, versus a previous yield of 3.59%.
Following the auction, the yield on Spanish 10-year bonds dropped back to an intra-day low of 6.65%, while the yield on Italian 10-year bonds rose to 5.82%.
The euro extended gains against the U.S. dollar following the auction, with EUR/USD up 0.37% to 1.2270.
European stock markets were mixed, with Spain’s IBEX 35 down 0.42% and Italy’s FTSE MIB Index down 0.25%. The EURO STOXX 50 was 0.07% lower, France’s CAC 40 dipped 0.07%, Germany's DAX was down 0.16%, while London’s FTSE 100 was up 0.20%.
Spain successfully auctioned EUR3.13 billion of government bonds, having set a targeted range of between EUR2 to 3 billion.
Spain’s Treasury sold EUR1.05 billion of 10-year bonds at an average yield of 6.64%, slightly up from 6.43% last month.
Demand was lower than the previous auction, with bid-to-cover ratio at 2.4 compared to 3.2 a month earlier.
Spain sold EUR1.02 billion of four-year bonds at an average yield of 5.97%, up from 5.35% in June.
Spain also sold EUR1.06 million of two-year bonds at an average yield of 4.77%, versus a previous yield of 3.59%.
Following the auction, the yield on Spanish 10-year bonds dropped back to an intra-day low of 6.65%, while the yield on Italian 10-year bonds rose to 5.82%.
The euro extended gains against the U.S. dollar following the auction, with EUR/USD up 0.37% to 1.2270.
European stock markets were mixed, with Spain’s IBEX 35 down 0.42% and Italy’s FTSE MIB Index down 0.25%. The EURO STOXX 50 was 0.07% lower, France’s CAC 40 dipped 0.07%, Germany's DAX was down 0.16%, while London’s FTSE 100 was up 0.20%.