- Spain saw five-year borrowing costs fall to a record-low at an auction of government bonds on Thursday, amid receding concerns over the health of the euro zone’s fourth-largest economy.

Spain’s Treasury sold EUR3.29 billion worth of five-year government bonds at an average yield of 2.254% earlier in the day, down from 2.382% at a previous auction last month.

In addition, Spain sold EUR2.3 billion of three-year debt at an average yield of 1.562%, down from 1.595% at a similar auction last month.

In total Spain’s Treasury sold EUR5.59 billion worth of debt, above the full targeted amount of EUR5.5 billion.

The yield on Spanish 10-year bonds stood at 3.724% following the auction. Meanwhile, the euro held on to modest losses against the U.S. dollar, with EUR/USD shedding 0.08% to trade at 1.3522.

European stock markets remained higher following the auction. Spain’s IBEX 35 Index rallied 1.1%, the EURO STOXX 50 climbed 0.85%, France’s CAC 40 tacked on 0.9%, Germany''s DAX advanced 1%, while London’s FTSE 100 inched up 0.6%.

Please LIKE our Facebook page - it makes us stronger