Investing.com - Spain saw borrowing costs decline at an auction of three- and five-year government debt on Thursday, as hopes for an imminent deal on an aid payment for Greece supported sentiment.
Spain’s Treasury sold EUR1.712 billion worth of three-year government bonds at an average yield of 3.617% earlier in the day, down from 3.66% at a similar auction last month.
Demand was weaker compared to a month earlier, with bids exceeding supply 2.1 times versus a "bid-to-cover" ratio of 2.83 in October.
The country also sold EUR645 million worth of five-year government bonds at an average yield of 4.477%, down from 4.68% in at a similar auction last month.
In addition, Madrid auctioned EUR1.523 billion of debt maturing in 2021 at an average yield of 5.517%.
In total, Spain’s treasury sold EUR3.88 billion in debt, above the full targeted amount of EUR3.5 billion.
The yield on Spanish 10-year bonds stood at 5.64% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.14% to trade at 1.2847.
European stock markets were up following the auction. Spain’s IBEX 35 Index rose 0.75%, the EURO STOXX 50 added 0.5%, France’s CAC 40 gained 0.4%, Germany's DAX advanced 0.75%, while London’s FTSE 100 eased up 0.4%.
Spain’s Treasury sold EUR1.712 billion worth of three-year government bonds at an average yield of 3.617% earlier in the day, down from 3.66% at a similar auction last month.
Demand was weaker compared to a month earlier, with bids exceeding supply 2.1 times versus a "bid-to-cover" ratio of 2.83 in October.
The country also sold EUR645 million worth of five-year government bonds at an average yield of 4.477%, down from 4.68% in at a similar auction last month.
In addition, Madrid auctioned EUR1.523 billion of debt maturing in 2021 at an average yield of 5.517%.
In total, Spain’s treasury sold EUR3.88 billion in debt, above the full targeted amount of EUR3.5 billion.
The yield on Spanish 10-year bonds stood at 5.64% following the auction.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD adding 0.14% to trade at 1.2847.
European stock markets were up following the auction. Spain’s IBEX 35 Index rose 0.75%, the EURO STOXX 50 added 0.5%, France’s CAC 40 gained 0.4%, Germany's DAX advanced 0.75%, while London’s FTSE 100 eased up 0.4%.