PARIS (AP) -- France raised more than euro10 billion ($13 billion) on Thursday in auctions of medium- and long-term bonds that saw its borrowing costs mostly fall.
The largest issue was euro5 billion worth of 5-year bonds for which demand was nearly double the amount served. The yield, or interest rate, for those bonds was 1.93 percent. Since they are a new product issued for the first time Thursday, there was no comparison for that figure.
The rates for two-, three- and 15-year bonds fell. They rose slightly, however, for 10-year inflation-linked bonds — to 1.13 percent from the 1.07 percent in the last such auction last month.
Rising yields are an indication investors are wary of lending money, and they have been at the heart of Europe's debt crisis.
While France is better off than struggling countries like Spain and Italy, there were concerns that when the Standard & Poor's rating agency stripped it of its prized AAA-rating last month, its borrowing costs could begin to rise dangerously. The downgrade, however, has had a limited effect, possibly because France already pays more money to borrow than other AAA-rated countries like Germany.
On the secondary market, where bonds are traded after they are issued, the yield for the 10-year benchmark was steady at 3 percent, indicating a solid but not stellar auction.
Overall, Thursday's auctions brought in euro10.2 billion, at the very top end of France's target range.
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