On Thursday, Spain witnessed a decrease in borrowing costs, as it was selling its government debt, amid speculation that an upcoming European leaders summit will decrease uncertainty over Spanish bailout plan.
Spain's treasury managed to sell 10-year bonds worth EUR1.51 billion, having the average yield of 5.458%, which was a decrease compared to the yield of 5.666% at a similar auction in September. However, demand for government notes was weaker than the month before, with bid-to-cover ratio of 1.9, whereas previous month's figure was 2.85.
Spain also managed to sell 3-year bonds worth EUR1.63 billion at the average yield of 3.227%, down from a previous month's reading of 3.956%; and 4-year bonds with the average yield of 3.977%, which was a decline from September's yield of 4.603%.