Spain's funding costs tumbled at a triple bond sale on Thursday supported by cash-rich investors seeking a higher return than is available on top-rated sovereign debt. The Treasury sold 4.6 billion euros ($6.1 billion) at the auction, beating the top end of its issuance target of between 3.5 billion and 4.5 billion euros.
The longest dated bond, due July 30, 2016, sold at an average yield of 4.336 percent, more than 1.2 percentage points less than when it was last auctioned in January. Spain saw its debt premium against German bonds rise to over 650 basis points last July from just 90 bps exactly three years ago when Brussels and the International Monetary Fund approved their first rescue package for the eurozone.