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Spain Short-term Borrowing Costs Rise Despite Strong Demand

7/24/2012 5:33 AM ET

Spain paid more than what it did last month to place its short-term debt on Tuesday, despite better demand, amid rising concerns that the country is set to seek a full bailout.

The country raised EUR 3.05 billion from the sale of its 3- and 6-month treasury bills, which was slightly more than the EUR 2 billion - EUR 3 billion target.

The Spanish Treasury sold EUR 1.63 billion of the 3-month bill to yield 2.434 percent, which is higher that the 2.362 percent paid in the previous auction on June 26. The bid-to-cover ratio, which reflects demand, rose to 2.94 from 2.60.

The country placed EUR 1.42 billion of its 6-month paper at yield 3.691 percent, up from 3.237 percent in the previous sale on June 26. Demand was 3 times the offer, better than 2.82 times last month.

by RTT Staff Writer

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