Investing.com - Spain saw borrowing costs rise at an auction of five-year government bonds on Thursday, as an escalating political crisis pushed the country’s borrowing costs higher.
Spain’s Treasury sold EUR2.07 billion worth of five-year government bonds at an average yield of 4.123% earlier in the day, up from 3.77% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.2 times versus a "bid-to-cover" ratio of 2.1 at a previous auction.
In addition, Spain sold EUR1.948 billion of debt maturing in 2015 at an average yield of 2.823%, compared to 2.476% at a similar auction last month.
Madrid also sold EUR593 million of debt maturing in 2029 at an average yield of 5.787%, up from 4.849% at a precious auction.
In total Spain’s Treasury sold EUR4.6 billion worth of debt, in line with the full targeted amount of EUR4.5 billion.
The yield on Spanish 10-year bonds on the secondary market stood at 5.473% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.31% to trade at 1.3563.
European stock markets remained higher following the auction. Spain’s IBEX 35 Index rose 0.7%, the EURO STOXX 50 added 0.3%, France’s CAC 40 edged up 0.2%, Germany's DAX was little changed, while London’s FTSE 100 eased up 0.2%.
Spain’s Treasury sold EUR2.07 billion worth of five-year government bonds at an average yield of 4.123% earlier in the day, up from 3.77% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.2 times versus a "bid-to-cover" ratio of 2.1 at a previous auction.
In addition, Spain sold EUR1.948 billion of debt maturing in 2015 at an average yield of 2.823%, compared to 2.476% at a similar auction last month.
Madrid also sold EUR593 million of debt maturing in 2029 at an average yield of 5.787%, up from 4.849% at a precious auction.
In total Spain’s Treasury sold EUR4.6 billion worth of debt, in line with the full targeted amount of EUR4.5 billion.
The yield on Spanish 10-year bonds on the secondary market stood at 5.473% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.31% to trade at 1.3563.
European stock markets remained higher following the auction. Spain’s IBEX 35 Index rose 0.7%, the EURO STOXX 50 added 0.3%, France’s CAC 40 edged up 0.2%, Germany's DAX was little changed, while London’s FTSE 100 eased up 0.2%.