The Spanish Treasury sold 3.524 billion euros ($4.8 billion) in bonds of three and five years, with demand outstripping demand by a ratio of 2.7 to one, the central bank said.
With this placement Spain has covered its financing goal for 2013. The Spanish Treasury has raised a total of 124.8 billion euros through medium and long-term bond sales so far this year, surpassing its goal of 121.3 billion euros.
The Spanish Treasury sold 2.249 billion euros of five-year bonds with the yield falling to 2.722 percent from 2.871 percent in the last comparable auction on November 7.
It also sold 1.275 billion euros of three-year bonds at an average yield of 2.182 percent, up from 2.101 percent in the last comparable auction on November 21. The Spanish government had expected to raise 2.5-3.5 billion euros in the bond auction.
Market sentiment for the bond auction was boosted by Moody's decision to raise its rating outlook for Spain on Wednesday to "stable" from "negative", citing signs of real improvement in the economy and government finances.
Moody's left the overall rating for Spanish debt unchanged at Baa3 -- just above junk-bond level -- but the change in the outlook reduced the likelihood of another downgrade as the country works to rebound from its financial crisis.
Evidence that the economy is adjusting to new market conditions, including a push in exports, and improved growth prospects for the medium term "supports Moody's view that Spain's public finances are on a slowly improving trend," the rating agency said.
"I think this is good news because it reflects a change in perception of capital markets, of those who fund us and to whom we owe a lot of money," Economy Minister Luis de Guindos said when asked about Moody's move during an interview with public radio RNE.
Fitch Ratings had already moved its outlook for Spain to "stable" at the beginning of November and Standard & Poor's did the same last week.
Spain has endured a double-dip recession since a decade-long property bubble burst in 2008. The country emerged from the latest two-year downturn in the third quarter of 2013 by posting export-led economic growth of just 0.1 percent.
Spain will hold its final bond auction on December 19.
msn.com
With this placement Spain has covered its financing goal for 2013. The Spanish Treasury has raised a total of 124.8 billion euros through medium and long-term bond sales so far this year, surpassing its goal of 121.3 billion euros.
The Spanish Treasury sold 2.249 billion euros of five-year bonds with the yield falling to 2.722 percent from 2.871 percent in the last comparable auction on November 7.
It also sold 1.275 billion euros of three-year bonds at an average yield of 2.182 percent, up from 2.101 percent in the last comparable auction on November 21. The Spanish government had expected to raise 2.5-3.5 billion euros in the bond auction.
Market sentiment for the bond auction was boosted by Moody's decision to raise its rating outlook for Spain on Wednesday to "stable" from "negative", citing signs of real improvement in the economy and government finances.
Moody's left the overall rating for Spanish debt unchanged at Baa3 -- just above junk-bond level -- but the change in the outlook reduced the likelihood of another downgrade as the country works to rebound from its financial crisis.
Evidence that the economy is adjusting to new market conditions, including a push in exports, and improved growth prospects for the medium term "supports Moody's view that Spain's public finances are on a slowly improving trend," the rating agency said.
"I think this is good news because it reflects a change in perception of capital markets, of those who fund us and to whom we owe a lot of money," Economy Minister Luis de Guindos said when asked about Moody's move during an interview with public radio RNE.
Fitch Ratings had already moved its outlook for Spain to "stable" at the beginning of November and Standard & Poor's did the same last week.
Spain has endured a double-dip recession since a decade-long property bubble burst in 2008. The country emerged from the latest two-year downturn in the third quarter of 2013 by posting export-led economic growth of just 0.1 percent.
Spain will hold its final bond auction on December 19.
msn.com
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