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Spain sells government bonds at lower rates

Thursday - 2/21/2013, 7:41am  ET

MADRID (AP) -- Spain has paid lower interest rates to raise EUR4.2 billion ($5.7 billion) in an auction of bonds, suggesting improved investor confidence in the government's financial outlook.

The Treasury said it sold EUR2.6 billion in 10-year bonds Thursday at a rate of 5.20 percent, compared with 5.40 percent at the last such auction Jan. 22.

It sold EUR1.1 billion in two-year bonds at a rate of 2.54 percent, compared with 2.82 percent on Feb. 7.

It also placed EUR548 million in six-year bonds with the rate falling to 4.27 percent, from 4.67 percent in December.

Spain's borrowing costs have fallen sharply in recent months since European authorities announced new measures strengthening investors' confidence that the country would be helped, if needed, to handle its debt.

The economy remains mired in recession, however, with 26 percent unemployment.


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