Spain sells 2.5 billion euros in bonds but at higher rates

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Spain raised 2.5 billion euros via an issue of 12-month and 18-month bonds on Tuesday, less than the maximum of 3.0 billion euros and at sharply higher rates, the economy ministry said.

The treasury sold 1.99 billion euros of 12-month bills at an average yield -- the rate of return paid to the holder -- of 3.449 percent, up from 2.363 percent when similar dated securities were last sold on November 16.

It also sold 523 million euros of 18-month bills at 3.721 percent, compared with 2.664 percent last month.

Demand for the 12-month paper was 2.23 times the amount sold compared with 1.9 times in November, and 4.54 times for the longer-dated bills, up from 3.66 last month.

The Spanish treasury sought to raise 2.0-3.0 billion euros with the bond issue on Tuesday.

© 2010 AFP

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