Forex News – Spain bond sale beats target

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Spain held a successful bond auction today as both its medium- and long-term bonds met solid demand.

The Spanish Treasury sold 6 billion euros worth of debt  ($7.77 billion) at the primary market bond auction beating its target sale of 3.5 billion euros. This results in the Treasury completing its end-of-year bond issuance goal.

Spain sold 2.5 billion euros of a bond maturing January 31, 2016 at a yield of 4.023 percent, compared to 5.276 percent when it was last auctioned December 1. The bond was 2 times subscribed after 2.8 two weeks ago.

The bond maturing April 30, 2020, sold 2.2 billion euros at an average yield of 5.201 percent while a bond maturing April 30, 2021 sold 1.4 billion euros for 5.545 percent.

The last time Spain ran a primary auction a 10-year bill November 17, it paid an average yield of 6.975 percent, considered by most economists as unsustainable over the long term.

Ten-year bond yields stayed little changed at 5.70 percent at time of writing.

Euro held steady against the dollar after the auction.