Spain pays euro-era highs to auction 5-yr bonds
MADRID, June 20
MADRID, June 20 (Reuters) - Spain's Treasury sold 2.2 billion euros ($2.8 billion) in medium-term bonds on Thursday with yields on the 5-year paper rising to 15-year highs, hours before the government is expected to finalise a multi-billion euro rescue package for its banks.
The Treasury sold 700 million euros worth of a 2-year bond, 918 million euros worth of a 3-year bond and 602 million euros of a 5-year bond, beating a target to issue up to 2 billion euros of the debt.
Demand was high, with bid-to-cover ratios rising on all three maturities from the last time each of the bonds was sold in a primary auction.
The Treasury sold the April 2014 bond at an average yield of 4.706 percent, more than double that paid at the last primary auction of the paper in March of 2.069 percent.
The bond due in July 2015 had a yield of 5.457 percent compared to 4.876 percent in May, while the longer dated July 2017 bond sold for 6.072 percent, compared to 4.960 percent last month. ($1 = 0.7873 euros)