Spain has raised an above-target Euro 3.9 billion ($5 billion) in a successful debt auction that saw interest rates drop sharply despite renewed concern about whether the country needs international help.
The Treasury said on Tuesady that it sold Euro 2.39 billion in 12-month bills with a yield of 2.56 per cent, down from 2.79 per cent in the previous auction on November 20. It sold Euro 1.5 billion in 18-month bills at an average rate of 2.79 per cent, down from 3.03 per cent.
The Treasury had set a maximum sale target of Euro 3.5 billion, and demand was double the amount offered.
Spain came under renewed pressure to seek help on Monday as its secondary market borrowing costs - a measure of investor wariness - rose after Italian Premier Mario Monti's decision to resign caused market jitters.