Spain's borrowing costs down amid hopes of ECB intervention
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MADRID, Aug 21 DPA
August 21 2012, 8:55PM
Spain on Tuesday raised 4.5 billion euros ($A5.38 billion dollars) at favourable interest rates as investors pinned their hopes on a possible European Central Bank (ECB) intervention.
Twelve-month bonds had a yield of 3.2 per cent, down from nearly 4 per cent in the previous auction in July.
The yield of 18-month bonds went down to 3.45 per cent from 4.4 per cent.
The treasury managed to sell bonds for the full amount it had hoped for.
The spread measuring the difference between German and Spanish 10-year-bonds meanwhile stood at 469 basis points.
It began to fall last week after remaining above 500 basis points for more than a month.
The ECB has raised the possibility of intervening in bond markets to shore up weaker euro zone members such as Spain.
The euro zone has also pledged to inject up to 100 billion euros ($A118.93 billion) into Spain's ailing banks.
