Spanish bond auction sees strong demand

Associated Press

MADRID — Spain raised far more money than initially planned in a debt auction which saw strong demand, the second successful test of investor confidence since Standard & Poor’s downgraded its credit rating last week.

The Treasury raised (euro) 6.6 billion ($8.5 billion), much more than its initial aim of between (euro) 3.5 billion and (euro) 4.5 billion in debut maturing in 2016, 2019 and 2022.

The interest rate on the 10-year bonds was 5.40 percent, down from 5.54 percent in the last such auction in December. The Treasury sold about (euro) 3 billion of these bonds Thursday, with demand 2.2 times greater than the amount on offer.

It also sold (euro) 1.3 billion in bonds maturing in 2016 and (euro) 2.3 billion in bonds maturing in 2019.