* Orders, price moves suggest market easily absorbed supply * Spain's first new 10-year benchmark since November 2011 * Bunds fall after strong ZEW economic sentiment data By Ana Nicolaci da Costa LONDON, Jan 22 (Reuters) - Spanish 10-year bonds rose on Tuesday as the launch of the country's first new bond of that maturity in more than a year drew strong interest. German Bund futures fell 16 ticks to 142.74 after German ZEW sentiment data came in far above expectations. Spain's Treasury expects to sell no more than 7 billion euros ($9.3 billion) of the new 10-year bond, demand for which topped 24 billion euros, an economy ministry source said on Tuesday. The syndicated bond offer closed at 1045 GMT, the source said. The 10-year sale represents a strong show of confidence in the country, which last year was widely expected to need a sovereign bailout. Yields on Spanish debt have fallen sharply since the European Central Bank pledged in September to buy the bonds of struggling euro zone states that apply for aid. "The order book is huge ... it has also grown very quickly," said Christian Lenk, interest rate strategist at DZ Bank. "That's a pretty strong result for the Spanish Tesoro." Ten-year bonds rose, reversing their previous direction. The 10-year yield fell 3.2 basis points to 5.13 percent. Five-year and two-year yields were flat at 3.70 percent and 2.28 percent respectively. Ten-year Italian yields were also 3.7 bps lower at 4.19 percent. Madrid's sale follows Rome's successful 6 billion euro sale last week of its first 15-year bond in more than two years. The decision to sell the bond via a syndicate of banks was seen securing demand, while Spain is also expected to continue benefiting from an environment in which the promise of central bank support has given investors space to seek returns. "I think people will look at the carry that's there ... and in the current mood there will be more than enough people out there who will be willing to chase (yields), plus the domestics," said Monument Securities strategist Marc Ostwald. At the euro zone's core, German Bund futures fell after the ZEW think tank said its monthly poll of economic sentiment rose to 31.5 points from 6.9 in December, beating a median forecast for 12.0 points in a Reuters poll of 37 economists.