The Spanish Treasury on Thursday sold 4.016 billion euros (about 5.3 billion U.S. dollars) of treasury bonds, attracting a high demand and paying lower borrowing costs in eight- and five year bonds.
The Treasury sold a total of 1.517 billion euros worth of bonds with a 10-year lifespan carrying an average interest rate of 4.765 percent, which is above the previous 4.517 percent of the last issue, while the demand reached 2.787 billion euros.
A further 1.381 billion euros worth of bonds with five-year lifespan fetched an average interest rate of 3.592 percent which is below the 3.598 percent of the last auction. The demand reached 3 billion euros in this case.
The remaining 1.117 billion euros worth of bonds with eight-year lifespan carried an average interest rate of 4.353 percent compared to the previous 4.475 percent, while the demand reached 2.189 billion euros.
This is the second auction the Spanish treasury held this week, after it successfully placed 5 billion euros on the market Tuesday.
The Spanish treasury will hold another auction next Tuesday when it will auction three and nine-month bonds.