Spain auctions €4bn at lower interest rates

The Spanish treasury on Thursday auctioned bonds of five and 10-month lifespan valued at 4.008 billion euros (5.282 billion U.S. dollars) at lower rates of interest. The auction can be considered a success as the Spanish treasury aimed to place between three and four billion euros, while demand was high reaching 8.945 billion. A total of 2.411 billion euros worth of 10-year bonds had an average interest rate of 4.503 percent, lower than the 4.723 percent of the last auction. Meanwhile, the remaining 1.596 billion euros worth of 5-year bonds carried an average interest rate of 4.777 percent from the previous 3.561 percent. After this auction the Spanish treasury has placed around 80 percent of Spain's 2013 financial needs and it will hold another auction on September 17, when it will place treasury bills of six and 12-month lifespan. (1 euro=1.32 U.S. dollars)