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Spain Kicks Off Tough 2013 With Strong Bond Sale

Spain's Treasury sold 5.8 billion euros in bonds on Thursday, well above its target range of 4 billion to 5 billion euros, and borrowing costs came down at its first debt auction of the year.

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The longest-dated bond, due July 30, 2026, with a 5.9 percent coupon, sold 470 million euros and was 2.9 times subscribed, compared to 2.1 times when it was last sold a year and a half ago.

The bond sold at an average yield of 5.555 percent, compared with 6.191 percent in July 2011.

(Read More: Spain May Dodge Bailout, Investors Offer Christmas Truce)

Spain also sold 3.397 billion euros of a new bond maturing March 31, 2015, with a 2.75 percent coupon. The bond had a bid-to-cover ratio of 2.1 and a yield of 2.476 percent.

It sold 1.950 billion euros of a January 31, 2018 bond with a 4.5 percent coupon at an average yield of 3.988 percent compared to a previous 4.680 percent when it was last sold on the primary market on November 8.

Demand was higher than the previous auction, with the bond 2.6 times subscribed compared to 1.6 times in November.

(Read More: Spain's PM Says Does Not Rule Out Asking for European Aid)

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