Spain sells 4.5bn euros of bonds at lower yields

The Spanish Treasury on Thursday raised 4.505 billion euros (6.037 billion U.S. dollars) at lower borrowing costs at its second bond sale of the year. The figure exceeded its target of 4.500 billion euros. A total of 2.409 billion euros' two-year bond was sold at an average interest rate of 2.713 percent, below the 3.358-percent level at the last time it was auctioned in December. Its marginal interest rate reached 2.77 percent, down from the 3.39 percent registered last December. About 1.584 billion euros of bond which will mature in 2018 fetched an average interest rate of 3.770 percent, compared with 3.988 percent at the previous sale, while its marginal interest rate was 3.80 percent, down from 4.24 percent in December. The remaining 512 million euros will mature in July 2041. These bonds carried an average interest rate of 5.696 percent, also below 5.893 percent last month. Its marginal interest rate was 5.70 percent, falling from 5.93 percent last month. The Ministry of Economy was optimistic, saying these auctions prove Spain's financial credibility has improved slightly. (1 euro = 1.34 U.S. dollars)