Spain sells 5.6 bln euros in bonds, yields drop

MADRID, April 3 Thu Apr 3, 2014 5:00am EDT

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MADRID, April 3 (Reuters) - Spain sold 5.6 billion euros ($7.7 billion) of debt at a triple-bond auction on Thursday, exceeding the top end of its target range at lower rates as optimism grew over the strength of an economic recovery.

The Treasury had aimed to sell between 4.5 billion and 5.5 billion euros in five-, ten- and 15-year bonds.

The shortest-dated paper, due April 30, 2019, sold at an average yield of 1.869 percent compared to 1.991 percent when it was last auctioned on March 20.

The Treasury sold 2.7 billion euros of the debt with demand of 1.7 times compared with 1.8 last month.

The benchmark ten-year bond sold 1.6 billion euros at an average yield of 3.291 percent compared to 3.344 percent when it was last auctioned on March 6. The bond was 2.1 times subscribed after 2.8 times previously.

The July 30, 2026 bond, last sold in January, auctioned for an average yield of 3.553 percent compared to 3.977 percent previously and sold at a bid-to-cover ratio of 2.2, compared to 1.4 in January. The Treasury auctioned 1.2 billion euros of the bond. ($1 = 0.7263 Euros) (Reporting By Sonya Dowsett; Editing by Julien Toyer)