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Spain sells 5-year debt at record low yield

Published 01/09/2014, 04:53 AM
Spain sells 5-year debt at record low yield of 2.382%
EUR/USD
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Investing.com - Spain saw five-year borrowing costs fall to a record-low at an auction of government bonds on Thursday, amid receding concerns over the health of the euro zone’s fourth-largest economy.

Spain’s Treasury sold EUR3.53 billion worth of five-year government bonds at an average yield of 2.382% earlier in the day, down from 2.697% at a previous auction last month. In addition, Spain sold EUR1.76 billion of 15-year debt at an average yield of 4.192%, down from 4.809% at a similar auction last month.

In total Spain’s Treasury sold EUR5.29 billion worth of debt, above the full targeted amount of EUR5 billion.

The yield on Spanish 10-year bonds fell to 3.720% following the auction. Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.23% to trade at 1.3607.

European stock markets remained higher following the auction. Spain’s IBEX 35 Index rallied 1%, the EURO STOXX 50 climbed 0.65%, France’s CAC 40 tacked on 0.3%, Germany's DAX advanced 0.4%, while London’s FTSE 100 inched up 0.3%.

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