MADRID: Spain sold 2.6 billion euros ($3.2 billion) at a triple bond auction on Thursday, with yields on the 10-year paper hitting fresh lows as expectations of more monetary easing by the European Central Bank next year spurs demand for euro zone debt.
Spain's Treasury surpassed the top end of its target to sell between 1.5 billion and 2.5 billion euros on Thursday, in the last bond auction of 2014. It has already sold more than its yearly goal of 129.3 billion euros in gross issuance, making the most of sharp falls in borrowing costs.
The Treasury sold 1.1 billion euros of the 10-year benchmark bond. The Oct. 31, 2024 bond sold at an average yield of 1.731 percent - a record low - compared to 1.840 percent in a Dec. 4 auction. The bid-to-cover ratio, a measure of demand, was 1.8, compared to 2.2 last time.
Spain also sold a bond due Oct. 31, 2023 at 1.577 percent, down from 1.931 percent at its last outing on Nov. 6. The Treasury sold 588 million euros of that paper, which was 2.2 times subscribed versus 3.4 times in November.
The Treasury sold 905 million euros of a 4.6 percent bond due Jul. 30, 2019 at a yield of 0.875 percent, down from 1.402 percent when it was last sold in June. The bid-to-cover ratio was 2.0 compared to 2.3 previously.
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