Spain short-term yields stay high as investors await aid move

MADRID: Spain's short-term debt yields remained high at auction on Tuesday on continuing uncertainty over when, or if, Spain will apply for aid and trigger an European Central Bank bond-buying programme.

Although the Treasury sold 4.6 billion euros ($6 billion) of 12- and 18-month T-bills, beating its target of between 3.5 billion and 4.5 billion euros, and yields were slightly lower than a month earlier, the demand was mixed.

Average yields fell to 2.835 percent on the 12-month bill from 3.070 percent in August, with 3.6 billion euros of the paper sold. The bid-to-cover ratio was 2 after 1.9 last month.

Spain sold 1 billion euros of the 18-month bill, which was 3.6 times subscribed compared to 4 times in August, at an average yield of 3.072 percent. The same paper sold at a yield of 3.335 percent a month earlier.