Spanish debt costs slip slowly

The Spanish government saw its borrowing costs fall yesterday in its first auction since new austerity measures were announced. It borrowed €3.56bn (£2.79bn), paying 3.918 per cent on 12-month bills, down from 5.074 per cent last month, and 4.242 per cent on 18-month debt, down from 5.107 per cent. But yields on 10-year bonds remain high at 6.81 per cent despite PM Mariano Rajoy’s latest austerity plan.