Spain issued a 9 billion euro ($9.7 billion) 10-year bond on Tuesday, drawing just over 34 billion in demand from investors as appetite for euro-denominated sovereign debt showed no sign of easing.
Markets have snapped up euro zone sovereign debt in recent days, with Belgium and Italy raking in combined order books of almost 43 billion euros for their issues last week. Bankers pointed to strong investor demand for yield and longer-maturity paper.
Spain drummed up more than 24 billion euros of indications of interest before even announcing initial price thoughts, according to bankers - usually a key stage in a bond's execution that allows investors to work out whether they are getting a good deal. The quick build-up in demand may have reflected Spain's innovative approach to such sales, three bankers away from Tuesday's transaction said, that involves offering investors better debt allocations if they show interest early.