Spain raises 5.5 bil­lion eu­ros in T-bill auc­tion

Kathimerini English - - Business & Finance -

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.

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