Spain has seen the interest rate it has to pay to get investors to buy its benchmark bond fall in an auction that signals rising confidence in the government's management of its finances.
The Treasury sold €802m of its key 10-year bonds today with the rate dropping to 4.2% from 4.47% in the last such auction on November 22.
It also sold €681m in three-year bonds at a yield of 3.35%, down from 3.39% on December 5. In addition, it raised €540m in bonds maturing in 2040 at a yield of 5.89%.
Demand was more than three times the amount offered overall.
Spain's borrowing costs have dropped from crippling highs earlier this year after the European Central Bank pledged to help troubled countries by buying up their short-term bonds if they apply for aid.
