Spain enjoys lower rates in new debt issue

25th January 2011, Comments 0 comments

Spain enjoyed strong demand and lower interest rates as it sold 2.245 billion euros ($3.1 billion) in short-term debt Tuesday, a sign of easing market tensions.

The Treasury issued the debt a day after Madrid outlined plans to inject up to 20 billion euros ($27 billion) into regional banks, heavily exposed to the collapse of the housing market in 2008.

Demand was strong as investors stood ready to buy nearly 12 billion euros, enabling Spain to meet its target of raising 2-3 billion euros.

The Treasury sold 945 million euros in three-month bills at an average yield of 0.980 percent, sharply down from 1.804 percent at the previous comparable auction on December 21 and slightly lower than Monday's market closing rate of 1.050 percent.

It also sold 1.3 billion euros in six-month bills at an average yield of 1.817 percent, down from 2.597 percent at the previous comparable auction on December 21 but up from 1.425 percent at Monday's market close.


© 2011 AFP

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