Madrid, Feb 13 (IANS) The Spanish treasury has held an auction of 6 and 12-month treasury bills valued at 5.5 billion euros ($7.5 billion) with lower demand compared to previous auctions.
Twelve-month treasury bills fetched an average interest rate of 1.5 percent, slightly above the 1.4 percent of the previous issue in January. Six-month bills went for an average interest rate of 0.859 percent in comparison with 0.888 percent of the previous issue, reported Xinhua.
It was the second auction in which the Spanish treasury had to pay higher interest rates in 2013 after Feb 6.
The auction was considered successful as bond sales exceeded expectations and the Spanish treasury placed more than predicated. As a result, Spain's risk premium fell from 385 points in early trading to 375 after the auction.