Spain sees strong demand at bond auction

City A.M. Reporter
Spain met strong demand when it sold 2.1bn euros (£1.68bn) of medium- and long-term bonds, passing a key test of its ability to tap investors after a minister said earlier this week the country was being cut off from the markets.

The Treasury sold 638m euros of a two-year bond, 825m euros of a four-year bond and 611 million euros of a benchmark 10-year bond.

The bid-to-cover ratios were higher than at recent auctions, with the 2012, 2014 and 2022 bonds covered 4.3, 2.6 and 3.3 times respectively.

The yields were higher than at recent sales. The 2014 bond was issued at a yield of 4.335 percent, the 2016 bond at 5.353 percent and the 2022 bond at 6.044 percent, a lower price than the 6.14 percent the same maturity bond trades at in the secondary market