Spanish borrowing costs higher but below 6pc psychological barrier
SPAIN paid more in a bond auction today but the interest rate on 10-year bonds was below the important 6pc psychological level.
According to the Bank of Spain, the country raised a higher-than-expected €2.5bn in an issue of two year and 10 year bonds.
Spain paid a rate of 5.7pc in the auction, up from a 5.4pc in a similar auction in January.
Analysts had expected that a yield breaching 6pc would spell serious trouble for the markets and for Spain's efforts to finance its sovereign debt.
The European Central Bank has been helping fragile economies to keep yields lower by offering cheaper money.
The ECB extended cheap, three-year loans of more than €1 trillion to eurozone banks in two tranches.