MADRID: Spain on Tuesday attracted 65 billion euros ($78.6 billion) of orders for a 5 billion euro 50-year bond, IFR News reported, underlining strong demand for long-dated bond issuance in a low-rate environment.

The bonds, which will mature in 2071, follow a successful 50-year bond sale from Belgium last week.

Spain marketed the new debt at 13 basis points over its outstanding July 2066 bonds, which closed Monday at a yield of 1.658%.

"It is a goldilocks period for markets, inflation expectations are rising but there's unlikely to be any tightening soon from the Fed or European Central Bank," said ING senior rates strategist Antoine Bouvet.

"As long as this is the case, investors will have no misgivings about buying very long-dated bonds," Bouvet said.

Spain is targeting net debt issuance of 100 billion euros ($122.5 billion) in 2021, down from 110 billion euros last year. Gross issuance is expected to total 289 billion euros, compared with 277 billion euros issued last year.

BBVA, Citi, Credit Agricole, JP Morgan, Nomura and Santander are managing the deal.