Borrowing costs fall as Spain sells debt; 10-year yield down to 4.917%

Published 03/07/2013, 04:54 AM
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Investing.com - Spain saw borrowing costs fall at an auction of ten-year government bonds on Thursday, as investors focused on a policy meeting by the European Central Bank later in the day.

Spain’s Treasury sold EUR2.435 billion worth of ten-year government bonds at an average yield of 4.917% earlier in the day, down from 5.202% at a previous auction.

In addition, Spain sold EUR2.026 billion of five-year debt at an average yield of 3.572%, down from 4.123% at a similar auction last month. Madrid also sold EUR569 million of two-year debt at an average yield of 2.632%.

In total Spain’s Treasury sold EUR5.039 billion worth of debt, just above the full targeted amount of EUR5 billion.

The yield on Spanish 10-year bonds stood at 4.952% following the auction.

Meanwhile, the euro added to gains against the U.S. dollar, with EUR/USD rising 0.52% to trade at 1.3035.

European stock markets remained higher following the auction. Spain’s IBEX 35 Index rose 0.75%, the EURO STOXX 50 added 0.6%, France’s CAC 40 gained 0.65%, Germany's DAX tacked on 0.35%, while London’s FTSE 100 edged 0.4% higher.

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