Spain has raised €4.8 billion in a debt auction that saw strong demand and a drop in the benchmark interest rate - a sign of increased investor confidence.
The Treasury sold €859m in benchmark 10-year bonds today at an average rate of 5.67%.
This is down from 6.65% in the last such auction August 2. Demand was 2.8 times the amount offered.
The Treasury also sold 3.94 billion in three-year bonds at a rate of 3.84%, up from 3.6%. The total sold was €300m more than planned.
Spain's borrowing costs have fallen from unsustainable highs since the European Central Bank in August unveiled plans to buy the bonds of financially weakened countries. Madrid has said it may apply for aid if the terms are reasonable.
