Spain bond auction meets strong demands; yields on the rise
The Spanish Tesoro sold €2.2 bln in a bond auction today against a target of €2.0 bln. The sale was split into €700 million of two-year notes, €898 million of notes maturing in 2015 and €602 million in 2017 bonds.
The two-year paper was sold at an average yield of 4.706% compared with 2.069% in the last sale in April. Demand was at 4.0 times versus 2.8. The five-year paper was sold at 6.072% yield against 4.96% in May with a bid ratio of 3.4 times compared to 3.1 previously.
The increase in yields reflects that the debt-crisis could spread to new countries apart from Spain, Greece and Cyprus.
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