Borrowing costs drop as Spain raises €800m

Thursday 14 March 2013 12.04
Demand more than double for latest Spanish long term bonds
Demand more than double for latest Spanish long term bonds

Spain has sold €803m in long-term debt at lower interest rates, reflecting improving investor sentiment towards the country's finances.

The Treasury said today it sold €365m in bonds maturing in 2041 at an average interest rate of 5.43%, compared with 5.69% in the last such auction in January.

It sold €304m in bonds maturing in 2040 at 5.43%, compared with 5.89% in December.

It also placed €134m in bonds maturing in 2029 with a yield of 5.22%, down from 5.79% in February.

Demand was more than double the amount offered, the Treasury said.

Spain's borrowing rates have dropped in recent months, due to the government's deficit-reduction programe and the offer of help last summer from the European Central Bank.