The Spanish Treasury saw strong demand in today's bond auction that led the Government to issue more debt than expected at lower financing costs.
Madrid ended up selling €2.545bn in bonds with maturity in 2016 and 2018, above the top range of its target which had been set at just €2.5bn.
Specifically, Spain sold €1.645bn in 5-year Treasury bonds with demand as reflected in the bid-cover ratio rising to 2.5, from the prior 2.0. Costs also dropped from the prior auction of this type of paper with the yield moving down to 3.059%, from the previous 3.128%.
On the three-year paper, Spain sold €900m with the yield moving lower to 2.064%, from the prior 2.225%. Demand soared with the bid-cover moving up to 4.2, compared to the previous 2.3.
The auction results had no effect on the price of the Spanish benchmark or risk premium.
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Madrid ended up selling €2.545bn in bonds with maturity in 2016 and 2018, above the top range of its target which had been set at just €2.5bn.
Specifically, Spain sold €1.645bn in 5-year Treasury bonds with demand as reflected in the bid-cover ratio rising to 2.5, from the prior 2.0. Costs also dropped from the prior auction of this type of paper with the yield moving down to 3.059%, from the previous 3.128%.
On the three-year paper, Spain sold €900m with the yield moving lower to 2.064%, from the prior 2.225%. Demand soared with the bid-cover moving up to 4.2, compared to the previous 2.3.
The auction results had no effect on the price of the Spanish benchmark or risk premium.
LiveCharts
