Investing.com - Investing.com - Spain saw borrowing costs decline at an auction of three- and six-month government bonds earlier Tuesday, as signs of progress in tackling the euro zone's debt crisis supported sentiment.
Spain's Treasury sold EUR1.58 billion worth of three-month government bonds at an average yield of 1.195% earlier in the day, down from 1.254% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.92 times versus a "bid-to-cover" ratio of 3.52 in November.
Spain also sold EUR1.95 billion of six-month debt at an average yield of 1.609%, down from 2.023% at a similar auction last month. The bid-to-cover ratio stood at 2.57, compared to 2.3 at an auction in November.
In total, Spain's Treasury sold EUR3.53 billion of government debt, just above the full targeted amount of EUR3.5 billion.
The yield on Spanish 10-year bonds stood at 5.38% following the auction. Meanwhile, the euro was fractionally higher against the U.S. dollar, with EUR/USD easing up 0.08% to trade at 1.3175.
European stock markets held on to gains. Spain's IBEX 35 Index rose 0.95%, the EURO STOXX 50 added 0.5%, France's CAC 40 climbed 0.25%, Germany's DAX tacked on 0.55%, while London's FTSE 100 advanced 0.35%.
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