Thursday, March 7, 2013

Rates down as Spain sells $6.5 billion in debt

Spain's Prime Minister Mariano Rajoy speaks during state of the nation debate at the Spanish Parliament in Madrid, Spain, Wednesday, Feb. 20, 2013. (AP Photo/Andres Kudacki)

Spain's Prime Minister Mariano Rajoy speaks during state of the nation debate at the Spanish Parliament in Madrid, Spain, Wednesday, Feb. 20, 2013. (AP Photo/Andres Kudacki)

(AP) ? Spain has sold ?5 billion ($6.5 billion) worth of bonds at a lower cost, in another sign that investors are getting more hopeful over the government's management of the country's debts.

The Treasury said Thursday it sold ?2.44 billion in 10-year bonds at an average interest rate of 4.92 percent, compared with 5.2 percent in the last such auction Feb. 21.

It also sold ?2.01 billion in 5-year bonds at 3.57 percent, compared with 4.12 percent Feb. 7. It also placed ?569 million of 3-year bonds at 2.63 percent from 2.71 percent Jan. 17.

Spain's borrowing rates have fallen recently, partly on the back of the government's deficit-reduction program.

However, the country remains stuck in recession and has unemployment of 26 percent.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-03-07-EU-Spain-Financial-Crisis/id-33c5b17203684e8499df308256efa2b4

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