Spain raises 5.5 billion euros in T-bill auction
MADRID (AP) – Spain has been able to raise 5.5 billion euros ($7.8 billion) in an auction of short-term bills at a lower interest rate, reflecting easing market fears following Portugal’s bailout approval. The treasury said yesterday it sold 4.3 billion in 12month bills with an average interest rate of 2.5 percent compared with 2.8 percent in April. It also sold 1.2 billion in 18-month bills at a rate of 3.1 percent, down from 3.7 percent last time. Demand for the shorter-term issue was more than double the amount offered, while the 18-month auction was over-subscribed by over four times. Spain’s borrowing rates have risen in recent months as Portugal opted for a bailout, following Ireland and Greece. Spain is seen as the next weakest link in the 17-nation eurozone.