Bond Auctions Successful Today
The Spanish Treasury raised 2.5 billion euro from the sale of its 3- and 6-month Treasury Bills selling all that were offered. The auction attracted bids totaling 14.835 billion euro. Overall the auction was rated a success story for Spain and the EFSF.
The government sold 1.736 billion euro of 3-month paper at an average yield of 0.39%, down from 1.285 % in a sale on January 24. The bid-to-cover ratio fell to 4.04 from 4.32.
The agency placed 764 million 6-month bills at an average yield of 0.764 %, much less than the 1.847 % paid in the January sale. Demand was robust at 10.2 times the offer, up from 6.87 last month.
Elsewhere today, the European Financial Stability Facility (EFSF) raised 1.99 billion euro at a sale of its 6-month bills. The sale attracted bids exceeding 6.208 billion euro.
European Financial Stability Facility (EFSF) today held a 6-month bill auction. The auction was met with very strong demand attracting over EUR6.208 billion in bids of which over EUR2.424 billion were non-competitive. The bid/cover ratio was 3.1.
EFSF sold EUR1.9902 billion in 6-month bills at a weighted average price of 99.90363% with a maturity date of 23 August 2012 (182 interest days). The weighted average yield was 0.1908%. Settlement date is Thursday 23 February (T+2).
Christophe Frankel, CFO and Deputy CEO commented “we continue to establish our short term bill program in order to fulfill our financing commitments and provide investors with regular opportunities across the yield curve”.
It was the third bill auction by EFSF. The fund had carried out a 3-month bill auction in December. The auction was carried out by the German Finance Agency using the Bundesbank’s EFSF bidding system.
Originally posted here
