MADRID: Spain sold 3.8 billion euros ($4.3 billion) of debt at a triple bond auction on Thursday, including a new inflation-linked bond and two long-term bonds, at lower yields as markets position themselves ahead of an European Central Bank bond-buying plan.
Spain's head of funding and debt management told Reuters the Treasury is planning to raise its issuance of ultra-long-dated bonds this year.
Spain's Treasury sold 2.9 billion euros of the 2029 and 2044 bonds, in the mid-range of its target and 915 million euros of the new 2019 linker, also in line with its target.
The new linker, due Nov. 30, 2019 with a real coupon of 0.55 percent, sold at an average yield of 0.148 percent and was 2.6 times subscribed.
The Treasury sold 1.3 billion euros of the bond due Jan. 31, 2029 with a 6 percent coupon, at an average yield of 1.907 percent and a bid-to-cover ratio, a measure of demand, of 1.5.
The nearest comparable bond, due Oct. 31, 2028 with a 5.15 percent coupon, sold at an average yield of 2.272 percent and a bid-to-cover of 1.7 on Jan. 8.
The longer-term bond, due Oct. 31, 2044, also with a 5.15 percent coupon, sold 1.6 billion euros at an average yield of 2.495 percent compared to 3.594 percent when it last sold Sept. 4. The bond was 1.2 times subscribed compared to 2 times previously.
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