Interest rates drop as Spain sells €4.5 billion in bonds

Thursday 09 May 2013 17.14
Spain sells €4.57 billion of bonds today
Spain sells €4.57 billion of bonds today

Spain beat its target for raising money in its latest bond auction in the latest sign that investors are confident the government can manage its finances and avoid a bailout.

The Treasury today sold a total of €4.57 billion in bonds at sharply lower rates - its maximum target was €4.5 billion.

€1.86 billion in three-year bonds, €1.55 billion in five-year bonds, and 1.16 billion in bonds maturing in 2026 were sold at today's auction.

Recession-stricken Spain's borrowing costs have plunged in recent months owing to the government's deficit-reduction programme and a pledge of help from the European Central Bank to buy up unlimited amounts of short-term bonds in countries.