MADRID: Spain comfortably sold 4.8 billion euros of bonds on Thursday, passing a second test of appetite for its debt this week even if doubts remain over how long relatively benign market conditions will persist as the country dithers over European aid.
The Treasury sold 859 million euros of a key 10-year bond, and 3.9 billion euros of a new three-year issue, which together were well above the 3.5 billion to 4.5 billion euro target.
Financing costs on the benchmark ten-year bond fell to 5.666 percent, down from 6.647 percent last month, in line with expectations and following a fall in yields since the European Central Bank announced a new bond buying programme to help periphery debt costs.
The average yield on the new 2015 bond was 3.845 percent, roughly in line with where it was trading on the grey market beforehand.
Both of the bonds drew decent demand, though less on the three-year which the Treasury sold more of. The bid-to-cover ratio on the 3-year bond was 1.6. On the 10-year issue it was 2.8, up from 2.4 in August.
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