Spain raises another €4 billion with ease

Tuesday 19 February 2013 11.35
Spain's borrowing costs ease again
Spain's borrowing costs ease again

Spain has managed to raise €4 billion at an affordable cost in another sign that investors are more confident about the government's handling of its finances.

The Treasury said it sold 3.1 billion in new nine-month bills today at a yield of 1.14%.

It also sold €886m in three-month bills at an average rate of 0.42%, compared with 0.44% in the last such auction January 22.

Spain's borrowing costs have fallen in recent months as fears the country might need a bailout have receded.

Demand was five times the amount offered for the three-month bills and 2.3 times for the new bills.

The country is in the throes of its second recession in three years with unemployment at 26%.