Spain short-term debt costs jump, demand solid

The Treasury saw the yield jump to 3.691% on the 6-month bill

Spain easily raised its target amount in a short-term debt auction on Tuesday, but paid the second highest yield since the birth of the euro on both bills on concerns the country may need a full sovereign bailout.

The Treasury raised 3.04 billion euros of 3-, and 6-month T-bills after targeting between 2 billion and 3 billion euros.

Spain sold 1.63 billion euros of the 3-month bill at an average yield of 2.434 percent compared to 2.362 percent in June, while the bill was 2.9 times subscribed compared to 2.6 times last month.

The Treasury saw the yield jump to 3.691 percent on the 6-month bill from 3.237 percent last month. It sold 1.42 billion euros of the paper and saw demand 3 times that on offer after a bid-to-cover ratio of 2.8 percent in June.