Spain has raised €3.6 billion in short-term debt at significantly lower interest rates in the first debt auction since the government announced a big new austerity package.
The Treasury sold €2.6 billion in 12-month bills at an average interest rate of 3.9%, down from 5.07% in the last such auction on June 19.
It also sold €961 million in 18-month bills at a rate of 4.24%, down from 5.10% that same day.
Demand exceeded supply by more than two and nearly four times, respectively.
The auction was closely watched: it was the first since the government announced a €65 billion deficit-cutting austerity package last week.
Spain's banks are being bailed out and the government is trying to avoid needing rescue aid itself.
