16.10.201209:26:00UTC+00Spain's Borrowing Costs Fall At T-Bill Auction

Spain's borrowing costs declined at its bill auction on Tuesday as investors expect the nation to make a formal bailout request without further delay.

The treasury raised EUR 4.863 billion from the issue of 12- and 18-month treasury bills. The amount exceeded the target range of EUR 3.5 billion-EUR 4.5 billion.

The yield on 12-month bills fell slightly to 2.823 percent from 2.835 percent at the prior auction in September. Demand improved today, with the bid-to-cover ratio rising to 2.7 from 2.

The average yield on 18-month bills dipped to 3.022 percent from 3.072 percent, while demand exceeded offer by about 3 times compared to 3.6 last time.