The Spanish government held another successful debt sale today, managing to sell short-term debt as the maximum target and helped lower borrowing costs. The auction results also helped support the euro.
The Spanish Treasury sold €2.507 billion ($3.26 billion) of three- and six-month Treasury bills, garnering total bids of €13.654 billion for the supply, implying a very comfortable coverage of the amount sold.
It paid an average yield of 1.285% on the three-month Treasury bills, down from 1.735% at the previous auction Dec. 20. It paid an average yield of 1.847% on the six-month Treasury bills, down from 2.435%.
Today’s debt auction completes a successful series of debt auctions for January giving some positive momentum for the indebted nation.
Recently, the euro zone periphery has benefited from the European Central Bank’s three-year liquidity operation in which it allocated near half a trillion euros to the banking system in December, helping spur demand for debt.