MADRID: Spain sold 4.5 billion euros ($5.1 billion) of debt at a triple bond auction on Thursday, including an inflation-linked bond, with yields rising on 10-year debt as fears of a deflationary cycle in the euro zone ease. Spain's Treasury sold 3.6 billion euros of the bonds due 2017 and 2025, within its target range of between 3 and 4 billion euros.
It also sold 885 million euros of the linker, due 2019, at the upper end of the target range. The Spanish Treasury had sold around 44 percent of its end-of-year target following the auction.
The linker, due Nov. 30, 2019 with a real coupon of 0.55 percent, sold at an average yield of -0.286 percent, below the 0.148 percent on its last outing on Feb. 5.
It was 1.7 times subscribed, compared to 2.6 times last time.
The Treasury sold 2.4 billion euros of the 0.5 percent paper due Oct. 31, 2017, at an average yield of 0.193 percent and a bid-to-cover ratio of 1.9 times.
That compared with an average yield of 0.133 percent on April 9, and a bid-to-cover ratio of 3.0. The 10-year bond, due April 30, 2025, sold for 1.882 percent, up from an average yield of 1.282 percent on April 16.
Demand was 3.0 times the offer, compared to a bid-to-cover ratio of 2.3 last time.
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