MADRID: Spain sold 5 billion euros ($5.52 billion) of debt at a triple bond sale on Thursday, hitting record low yields as the European Central Bank unleashes a government bond buying programme.
The Treasury sold more than its planned mid-range target of between 4 billion and 5 billion euros at the auction, at the lowest yields yet for the 3-year and 5-year paper. Spain has now raised around 24 percent of its 2015 issuance target.
The shorter-dated bond, due October 31, 2017, sold 1.08 billion euros and was 3.8 times subscribed, compared to 3.3 times at its last auction Feb. 18. The bond sold for an average yield of 0.180 percent compared to 0.384 percent last month.
The five-year bond, due January 31, 2020, sold for an average yield of 0.517 percent after 0.849 percent when it auctioned January 15. The Treasury sold 2.39 billion euros of the bond, which was 1.9 times subscribed after 2.4 times in January.
The Treasury sold 1.53 billion euros of the July 30, 2032 bond at an average yield of 1.927 percent. Demand outstripped the offer by 1.6 times.
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