Spain short-term borrowing costs jump in auction
FRANKFURT (MarketWatch) -- Spain saw short-term borrowing costs jump sharply Tuesday as it auctioned 3.08 billion euros ($3.85 billion) of three- and six-month bills. The Treasury sold 1.6 billion euros of three-month bills at an average yield of 2.36%, up sharply from 0.85% in a May auction. A sale of 1.48 billion of six-month bills produced an average yield of 3.24%, up from 1.74% in May. Although the total amount sold topped the top end of the Treasury's target range of 2 billion to 3 billion euros, demand faded, with bids for three-month bills exceeding supply 2.6 times versus a bid-to-cover of nearly 4-to-1 in May. The bid-to-cover on the sale of six-month bills fell to 2.8 from 4.3 in May. Meanwhile, Italy sold nearly 3 billion euros of 2014 zero-coupon debt, with the yield rising to 4.7% versus 4.04% in a May sale, according to Bloomberg.