Spain, France Auction $17 Bln Debt

Yields rise but both countries raise what they’d targeted.

Spain and France sold 13.05 billion euros ($17 billion) in debt, with both countries raising what they’d targeted amid rising borrowing costs.

Spain sold 2.54 billion euros of two- and 10-year securities and France raised 10.5 billion euros in debt out of an 11 billion-euro goal. The yield on the 10-year Spanish benchmark was 5.743 percent compared with 5.403 percent when it last sold it in January. France’s five-year notes had an average yield of 1.83 percent today, up from 1.78 percent on March 15.

Spain’s Woes

The Spanish sell-off has been triggered by Rajoy’s March 2 statement that the nation wouldn’t keep a promise to cut its deficit to 4.4 percent of gross domestic product this year and would instead post a shortfall of 5.8 percent. Under pressure from European partners, his government agreed 10 days later to cut the shortfall to 5.3 percent of GDP.

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