Spain raised €2.589 billion in three to eight-year bonds today but was forced to pay higher rates.
This comes amid renewed market concern about its public finances despite a tough budget.
This was Spain's first bond issue since the government presented its budget on Friday, marked by sharp cuts and tough austerity measures.
Bids totalled over €6.5 billion, but the amount raised was at the lower end of the €2.5-3.5 billion range hoped for
The treasury had to pay higher rates than in its previous similar bond issues, reflecting a higher risk perception.
It paid 2.89% on three-year bonds, compared to 2.44% on March 15, 4.319% on four-year bills from 3.376% on March 1, and 5.338% for eight-year bills from 5.156% on September 15.
