Investing.com - Spain saw borrowing costs fall at an auction of two-, three- and five-year government bonds on Thursday, amid uncertainty over whether the euro zone’s fourth-largest economy will soon request a full scale sovereign bailout.
Spain’s Treasury sold EUR710 million of five-year debt at an average yield of 4.766%, down sharply from 6.456% at a similar auction last month. The bid-to-cover ratio stood at 2.5, compared to 2.06 at a previous auction.
The country also auctioned EUR1.285 billion worth of two-year government bonds at an average yield of 2.282% earlier in the day, down from 2.798% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.0 times versus a "bid-to-cover" ratio of 1.9 in September.
Spain also sold EUR1.997 billion of three-year debt at an average yield of 3.956%, compared to a yield of 3.845% at a similar auction last month. The bid-to-cover ratio stood at 2.0, up from 1.56 at an auction last month.
In total, Spain’s Treasury sold EUR3.99 billion worth of government debt, in line with expectations.
The yield on Spanish 10-year bonds stood at 5.877% following the auction, while the euro remained higher against the U.S. dollar, with EUR/USD adding 0.21% to trade at 1.2933.
Meanwhile, European stock markets remained broadly lower. Spain’s IBEX 35 Index was flat, the EURO STOXX 50 fell 0.25%, France’s CAC 40 declined 0.35%, Germany's DAX slumped 0.35%, while London’s FTSE 100 shed 0.25%.
Spain’s Treasury sold EUR710 million of five-year debt at an average yield of 4.766%, down sharply from 6.456% at a similar auction last month. The bid-to-cover ratio stood at 2.5, compared to 2.06 at a previous auction.
The country also auctioned EUR1.285 billion worth of two-year government bonds at an average yield of 2.282% earlier in the day, down from 2.798% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.0 times versus a "bid-to-cover" ratio of 1.9 in September.
Spain also sold EUR1.997 billion of three-year debt at an average yield of 3.956%, compared to a yield of 3.845% at a similar auction last month. The bid-to-cover ratio stood at 2.0, up from 1.56 at an auction last month.
In total, Spain’s Treasury sold EUR3.99 billion worth of government debt, in line with expectations.
The yield on Spanish 10-year bonds stood at 5.877% following the auction, while the euro remained higher against the U.S. dollar, with EUR/USD adding 0.21% to trade at 1.2933.
Meanwhile, European stock markets remained broadly lower. Spain’s IBEX 35 Index was flat, the EURO STOXX 50 fell 0.25%, France’s CAC 40 declined 0.35%, Germany's DAX slumped 0.35%, while London’s FTSE 100 shed 0.25%.