Spain sells $3.6BN in bond sale at higher rates

MADRID – Spain's Treasury has successfully sold more than €3 billion (3.6 billion) in a short-term debt auction that saw investors demanding higher interest rates as concern continued over whether the country can manage its debt and evade a full-blown bailout.

The Treasury said it sold €1.63 billion in three-month bills at an average interest rate of 2.43 percent compared to 2.36 percent in the last such auction June 26. It sold €1.42 billion in six-month bills on a yield of 3.69 percent, up from 3.24 percent. Demand was three times the amount offered in both sales.

Spain is close to being shut out of financial markets as its borrowing costs soar. Investors Tuesday demanded a 7.55-percent interest rate on its benchmark 10-year bond, a level that could eventually force Spain into a bailout.