Spain Sees Higher Rates, Demand In Bond Sale

Business article on Spain sees higher rates, demand in bond sale regarding Percent, Million, Auction, Strong, Investor, Bonds, Million, Interest, Billion, Average, Amount, Percent, Offer, Year, , Interest, , Indicating, , Year

Spain has successfully raised €2.2 billion ($2.8 billion) in a debt auction that saw strong investor demand, though it had to pay sharply higher interest rates due to concern that the country may eventually need a bailout.

The auction Thursday came before two auditing firms are to report on how much Spain's troubled banks may need in bailout money.

The Treasury sold €602 million ($765 million) in five-year bonds at an average interest rate of 6.07 percent, up from 5.4 percent in the last such auction June 7. It sold €918 million ($1.2 billion) in three-year bonds at 5.46 percent, up from 4.3 percent, and €699 million ($888 million) in two-year bonds.

Overall, demand was between three and four times the amount on offer, indicating strong investor interest.