Spanish 10 year bonds yield lowest in 3 years

The Spanish Treasury on Thursday held a successful bond auction for bonds with a maturity of between four and ten years. A total of 3.5 billion euros (4.7 billion U.S. dollars) worth of bonds were sold at lower interest rates in what was the first bond auction in the wake of the publication of Spain's 2014 budgets and the political crisis in Italy provoked by Silvio Berlusconi's attempts to force a general election. 1.3 billion euros of bonds with a five-year lifespan with an average interest rate of 3.75 percent. This was slightly above the 3.47 percent in the previous auction. 955 million euros of bonds with a 4.3 year lifespan fetched a rate of 2.79 percent, compared to 3 percent in May. Finally, 10-year bonds were placed at 4.26 percent, the lowest yield in three years. Spain had earlier that Spain's public debt would stand at 99.8 percent at the end of next year, which has now been revised down to 98.9 percent, a reduction worth around 10 billion euros. The next bond auctions are scheduled for Oct. 15 and 17.