Spain, France sell debt; Markets await Spanish bank audit results

FXstreet.com (Barcelona) - Spanish yields rose at a bond auction held on Thursday, which was met with high demand. The country's Treasury auctioned 2.22 billion euros of debt maturing in 2014, 2015 and 2017, out of a 1-2 billion euro target. The average yield on 5-year bonds increased to 6.072%, in comparison with 4.96%.
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Also France auctioned debt on Thursday. The country rose 8.432 billion euros out of the planned 7-8.5 billion euros. Bonds maturing in February 2017 were sold at an average yield of 1.43% vs 1.72% the country had to pay at the previous auction.

Spanish bank audit results, which will be made known later on Thursday, will reveal just how much does the country need to recapitalize its distressed banking sector. Should the number exceed  €100 billion, the country's risk premium might rise again.

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