Treasury wins over markets with 3.9 billion auction

Spain's Treasury sold today 3.992 billion euros in bonds, close to the 4 billion set for the auction and at mostly lower interest rates than the previous auction. The Treasury auctioned off 1.285 billion in bonos maturing on October 31 2014, at a 3.282% yield, down from 5.204% and with demand doubling the offer. It also auctioned 710 million in five-year bonds maturing on July 30 2017, with an average interest rate of 4,766%, down from the 6.459% in the last auction in July and with a demand exceeding the offer 2.5 times. Finally, it sold 1.997 billion in bonos maturing on October 31 2015 at a 3.956% yield from the previous 3.845%. This is the first auction after the presentation of the 2013 budget and of the results of a banks audit by Oliver Wyman which revealed the need to re-capitalize with 60 billion euros, hinting at a possible bailout of the economy.