Spain pays higher rate to raise 3.225bn euro

MADRID: Spain paid sharply higher borrowing rates to raise 3.225 billion euros ($4.3 billion) in new short-term debt Tuesday, a sign of market tension over its sovereign debt outlook.

The high rates attracted strong interest in the auction of three- and six-month bills, allowing the state easily to meet its target of raising 2.5-3.5 billion euros, according to a Bank of Spain statement.