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Spanish treasury sells bond at lowest interest rates since 2010
Last Updated: 2013-03-15 09:46 | Xinhua
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The Spanish Treasury enjoyed another successful bond auction on Thursday as it sold 803 million euros (1,039 million U.S. dollars) on the market at the lowest interest rates since 2010.

Thursday's issue was a one-off extraordinary of issue of bonds outside of the normal Treasury calendar of bond auctions and was limited to market creators and authorized entities.

Bonds with 16 and 30 year lifespans were offered with 134 million euros of bonds with a 16 year life fetching a rate of 5.258 percent, which is below the previous level of 5,822 percent.

Meanwhile 304 million euros of 30-year-bonds carried rates of 5.445 percent, below the previous rate of 5.928 percent and a further 365 million euros of bonds which will mature in 2041 had rates of 5.454 percent, lower than the 5.705 percent of the previous auction.

Despite the more limited market for this issue, demand was high, outstripping the availability of the bonds by two and a half times with demands totaling 2,057 million euros.

Thursday's auction follows on the back of a successful auction on Tuesday which saw the Treasury place six and 12 months bonds worth of 5.830 billion euros on the market, with demand again exceeding expectations and supply and with favorable interest rates.

So far 2013 has seen the Spanish Treasury place bonds worth 37 billion Euros covering 30 percent of the expected needs for the year in just under two and a half months.

There will be two more bond auctions before the end of March with three and nine months bonds to be offered on March 19 and a further auction two days later.

Meanwhile the Spanish risk premium rose slightly after this Thursday's action, climbing five points to 333, partly affected by the disappointing auction held in Italy this Wednesday. (1 euro = 1.29 U.S. dollars)

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