Spain sells bonds at highest cost in 14 years
The Spanish Treasury sold €3.75 bln of three bonds on Thursday, at the top of the targeted €2.75-3.75 target range, however at the highest yield levels in 14 years.
Spain sold €1.2 bln in 2015, 3.0 percent coupon bonds, at 5.187 percent yield versus 3.639 percent at a previous auction. It sold €1.15 bln of 2016, 3.15 coupon bonds at a 5.276 percent yield. The 2017, 3.80 percent coupon paper sold a total of €1.4 bln at an average yield of 5.544 percent, up from 4.782 percent.
The bid-to-cover ratio was 2.7 on the 2015 paper, 2.8 on the 2016 bond and 2.7 on the 2017 paper. Previously the bid-to-cover ratios were 2.1, 1.8 and 1.8 respectively.
EUR/USD rose to its session high of 1.3505 following the Spanish bond sale.
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