admin855 million euros’ worth of three-month bills with an average yield of 0,12 percent, down from 0,285 percent from the last similar auction held on March 19.
It raised another 2,156 billion euros through the sale of nine-month bills at an average yield of 0,787 percent, down from 1,007 percent in the last similar auction on March 19.
The Spanish government had set a target of raising between 2 billion and 3 billion euros in the auction. Demand outstripped supply by a ratio of 2:7.
Spain’s borrowing costs have fallen since the European Central Bank announced in September its readiness to buy an unlimited sum of bonds to curb borrowing costs for troubled member states that accept strict conditions.
Market sentiment has also been helped by calls from the European Commission and the International Monetary Fund for a greater balance between deficit reduction and economic growth and the reelection of Italian President Giorgio Napolitano, which raises hopes for a solution to the country’s political crisis.
The risk premium – the extra rate demanded by investors in Spanish 10-year bonds over the rate offered by equivalent German Bunds – stood at 326 basis points just after the auction, compared to 327 basis points when markets closed on Monday. – AFP.
Online Reporter