Investing.com - Spain saw borrowing costs fall at an auction of five-year government bonds on Thursday, as sentiment remained upbeat after a senior European Central Bank policymaker said Wednesday that the situation in the euro zone had stabilized.
Spain’s Treasury sold EUR1.6 billion worth of five-year government bonds at an average yield of 3.77% earlier in the day, down from 3.99% at a similar auction last week.
Demand was strong, with bids exceeding supply 2.3 times versus a "bid-to-cover" ratio of 2.59 at a previous auction.
In addition, Spain sold EUR2.4 billion of debt maturing in 2015 at an average yield of 2.713%, compared to 3.358% at a similar auction last month.
Madrid also sold EUR512 million of debt maturing in 2041 at an average yield of 5.696%.
In total Spain’s Treasury sold EUR4.5 billion worth of debt, in line with the full targeted amount,
The yield on Spanish 10-year bonds stood at 5.033% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.44% to trade at 1.3348.
European stock markets remained mixed following the auction. Spain’s IBEX 35 Index rose 0.3%, the EURO STOXX 50 was flat, France’s CAC 40 edged up 0.3%, Germany's DAX dipped 0.3%, while London’s FTSE 100 was little changed.
Spain’s Treasury sold EUR1.6 billion worth of five-year government bonds at an average yield of 3.77% earlier in the day, down from 3.99% at a similar auction last week.
Demand was strong, with bids exceeding supply 2.3 times versus a "bid-to-cover" ratio of 2.59 at a previous auction.
In addition, Spain sold EUR2.4 billion of debt maturing in 2015 at an average yield of 2.713%, compared to 3.358% at a similar auction last month.
Madrid also sold EUR512 million of debt maturing in 2041 at an average yield of 5.696%.
In total Spain’s Treasury sold EUR4.5 billion worth of debt, in line with the full targeted amount,
The yield on Spanish 10-year bonds stood at 5.033% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.44% to trade at 1.3348.
European stock markets remained mixed following the auction. Spain’s IBEX 35 Index rose 0.3%, the EURO STOXX 50 was flat, France’s CAC 40 edged up 0.3%, Germany's DAX dipped 0.3%, while London’s FTSE 100 was little changed.