Spain Beats Bond Sale Goal

Decent auction results ease concerns about nation’s market access.

Two days after a senior government official said Spain’s access to debt markets was closed, the Treasury beat its 2 billion-euro target ($2.5 billion) at a bond sale, easing concern about financing the region’s third-biggest budget deficit.

Spain sold its benchmark 10-year bond to yield 6.044 percent, the most since Nov. 17, when the yield in the secondary market reached a euro-era record 6.78 percent. Demand for the security was 3.29 times the amount sold, higher than at the previous auction in April. In the secondary market Spain’s 10-year bond yield fell 12 basis points to 5.679 percent.

May Rally

“In the 10-year area, France has been a notable performer in recent weeks, in doing so bucking the strong widening trend seen in the periphery,” Huw Worthington, a fixed-income strategist at Barclays Capital in London, wrote yesterday in a note to investors.

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