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Interest rates down in Spanish bond sale

Interest rates down in Spanish bond sale

Spain has been able to raise (EURO)5.5 billion ($7.8 billion) in an auction of short-term bills at a lower interest rate, reflecting easing market fears following Portugal's bailout approval.
The treasury said Tuesday it sold (EURO)4.3 billion in 12-month bills with an average interest rate of 2.5 percent compared with 2.8 percent in April.
It also sold (EURO)1.2 billion in 18-month bills at a rate of 3.1 percent, down from 3.7 percent last time.
Demand for the shorter-term issue was more than double the amount offered, while the 18-month auction was over-subscribed by over four times.
Spain's borrowing rates have risen in recent months as Portugal opted for a bailout, following Ireland and Greece. Spain is seen as the next weakest link in the 17-nation eurozone.


Updated : 2021-02-26 16:00 GMT+08:00