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MADRID: Spain issued 4.6 billion euros ($5.7 billion) during a triple bond sale on Thursday at lower yields compared to previous auctions despite upward inflationary pressures as oil prices rise to their highest level since late 2014.

The Treasury had aimed to sell between 4 billion and 5 billion euros of debt at the auction.

The Oct. 31, 2022 bond sold 2.1 billion euros at an average yield of 0.194 percent and a bid-to-cover, a measure of demand, of 1.3. That compared to a previous yield of 0.294 percent and bid-to-cover of 1.45 when it last auctioned mid-March.

The benchmark 10-year, due April 30, 2028, sold 1.7 billion euros at a yield of 1.235 percent after 1.148 percent when it last sold April 5. Demand outstripped supply by 1.3 times compared to 1.5 times previously.

The longest-dated, July 30, 2033 bond, sold 757 million euros for 1.723 percent and at a bid-to-cover of 2.0. The bond sold mid-March for 1.875 percent with demand at 1.65.

Copyright Reuters, 2018
 

 

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