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Interest rate up sharply in key Spanish bond sale
Spain is having to pay sharply increased interest rates to borrow 2.4 billion Euros from bond markets as investors remain cautious about a downgrade and financial difficulties.
The central bank said Thursday the treasury sold 1.8 billion Euros in 10-year bonds at an average interest rate of 5.4%, up from 4.6% in the last such auction Nov. 18.
It was obliged to pay a rate of 6% to sell 618 million Euros in 15-year bonds, up from 4.5% in October.
Demand was strong, however, almost double the amount on offer for the 10-years and almost triple the sum for the 15-years.
Latest News & Stories
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