Photo: AP Images
MADRID (AP) — Spain has successfully raised euro4 billion ($5.2 billion) at a bond auction, with investor appetite strong despite persistent jitters over the country’s economy and the Greek debt crisis.The Treasury sold euro2.3 billion in three-year bonds at an average interest rate of 3.3 per cent, up from 2.9 per cent at a comparable auction on Feb 2.
It also sold euro733 million in another 3-year bond with a different coupon rate, and about euro1.1 billion in bonds maturing in 2019. There were no comparable interest rates for these.
Demand was 2.2, 4.6 and 3.2 times larger than supply.
The auction came as the government confirmed Spain’s economy shrank in the fourth quarter and Parliament prepared to pass a bill designed to strengthen the Spanish banking sector.