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Yields edge higher as Spain sells 10-year debt

Published 06/20/2013, 04:57 AM
EUR/USD
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Investing.com - Spain saw borrowing costs edge higher at an auction of five- and ten-year government bonds on Thursday, as traders continued to monitor steps in handling the euro zone's ongoing debt crisis.

Spain’s Treasury sold EUR1.12 billion worth of ten-year government bonds at an average yield of 4.765% earlier in the day, up from 4.517% at a previous auction.

In addition, Spain sold EUR1.38 billion of five-year debt at an average yield of 3.592%, up from 3.001% at a similar auction last month. Madrid also sold EUR1.52 billion of eight-year debt at an average yield of 4.353%.

In total Spain’s Treasury sold EUR4.02 billion worth of debt, above the full targeted amount of EUR4 billion.

The yield on Spanish 10-year bonds stood at 4.779% following the auction.

Meanwhile, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.58% to trade at 1.3217.

European stock markets remained lower following the auction. Spain’s IBEX 35 Index tumbled 1.6%, the EURO STOXX 50 dropped 2.1%, France’s CAC 40 sank 2%, Germany's DAX lost 2.2%, while London’s FTSE 100 plunged 2%.

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