Spain’s borrowing costs rose Tuesday at an auction of short-term debt, signaling investors’ uncertainty over the country’s strategy for emerging from crisis.
The Spanish Treasury sold almost 4 billion euros, or $5.2 billion, the maximum amount targeted. The three-month bills drew yields of 1.203 percent, up sharply from the 0.946 percent it paid to move similar paper in late August. The yield on six-month debt rose to 2.213 percent from 2.026 percent at the previous auction.
It was a signal of investor edginess over whether Spain will ask for help from the European Central Bank’s bond-buying program.
While that program was designed to help keep a lid on the borrowing costs of countries like Spain, the Spanish government has been hesitant to risk the stigma of requesting such assistance.News Tribune news services