Spain pays high rates to raise $3.7 bln in bonds

MADRID — Spain has managed to sell about (euro) 3 billion ($3.67 billion) in medium-term debt, though at high interest rates due to worries about the government’s ability to right its finances.

The Treasury sold (euro) 2.96 billion Thursday in bonds maturing in 2014, 2017 and 2019. Its target range was (euro) 2 billion to (euro) 3 billion. Demand was roughly two times the amount on offer for each issue.

But the interest rate on the five-year debt rose sharply to 6.46 percent, from 5.54 percent at the last such auction on July 5. There were no comparable rates for the other maturities.

The auction comes as Parliament debates a package of tax hikes and civil servant pay cuts that have triggered daily protests. A nationwide wave of rallies is planned for Thursday evening.