Spain successfully sold €3.1 billion in medium and long term bonds today but at a sharply higher cost.
This is another sign that Spain is struggling to convince skeptical investors that it will not need a bailout.
The Treasury sold €1.04 billion in 10-year bonds at an average interest rate of 6.65%, up from 6.4% in the last such auction July 5.
Spain's 10-year bonds have been fetching similar yields on the secondary market for some months now.
The Treasury also auctioned €1.02 billion in four-year bonds at a rate of 5.97%, up from 5.54%. It sold €1.06 billion in two-year bonds at 4.77%.
One good sign was that demand was more than double the amount offered in the 4 and 10-year bond sales and nearly three times the amount in the 2 year sale.
Spain is in its second recession in three years with an unemployment rate of nearly 25%.
Earlier, the Labour Ministry said the number of people registered as unemployed fell by 27,814 in July as more people found work in summer tourism. It said the total number of people registered as jobless is now 4.58 million. It was the fourth monthly decline in a row.
