Borrowing Costs Decrease as Spain Sells Debt; 10-Year Yield Drops to 4.917%

Spain experienced a decrease in borrowing costs during a recent auction of ten-year government bonds, as investors anticipated a policy meeting by the European Central Bank later that day.

The Treasury of Spain sold €2.435 billion worth of ten-year bonds, achieving an average yield of 4.917%, down from 5.202% at the last auction. Additionally, €2.026 billion of five-year debt was sold, with an average yield of 3.572%, a reduction from 4.123% in a previous auction. The Treasury also issued €569 million of two-year debt at an average yield of 2.632%.

In total, the Spanish Treasury placed €5.039 billion worth of debt in the market, slightly above the targeted amount of €5 billion. Following this auction, the yield on Spanish 10-year bonds was 4.952%.

On the foreign exchange front, the euro strengthened against the U.S. dollar, rising by 0.52% to trade at 1.3035.

European stock markets maintained their upward trajectory after the auction. Spain’s IBEX 35 Index increased by 0.75%, while the EURO STOXX 50 rose by 0.6%. France’s CAC 40 gained 0.65%, Germany’s DAX was up 0.35%, and London’s FTSE 100 saw an increase of 0.4%.