Forex News – Spanish bond sale beats target; euro rises

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The Spanish Treasury held a successful bond auction on Thursday, its first debt sale in 2012. The targeted sale amount was surpassed by double, making markets satisfied. This led the euro to rise against the dollar, yen and sterling. EURUSD bounced to a day high of 1.2751.

The Spanish government sold a total amount of 9.98 billion euros ($12.7 billion) of government bonds, beating its target range of 4 billion to 5 billion euros.

The safe haven German Bund future fell to a session-low after the auction results. Spanish bond yields dropped.

A sale of 2.5 billion euros of April 2016 bonds saw the yield decline to 3.75% versus a yield of 4.87% at a previous auction, reports said. 4.27 billion euros of a July 2015 bond were sold, producing a yield of 3.38%, while a sale of 3.2 billion euros of October 2016 bonds saw the yield decline to 3.91% from 4.85%.

In other currencies, the Australian dollar surged after the auction results as market sentiment improved. AUDUSD rose to a day high of 1.0341 by 10:15 GMT, trading earlier at 1.0286 in the European session.