Spanish bond auction unaffected by Cyprus jitters

Spain pays lower interest rates in bond auction raising $5.83, despite Cypriot crisis

Associated Press
Spanish bond auction unaffected by Cyprus jitters
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A customer leaves a fruit and vegetables shop displaying special price offers for apples, runner beans and courgettes, all for one euro in Madrid, Spain Wednesday March 20, 2013. Spanish Economy Minister Luis de Guindos has told reporters that financially troubled Spain won’t enter into a new period of economic turbulence because of the concerns about Cyprus’ bailout and that Spanish depositors should stay calm. (AP Photo/Paul White)

MADRID (AP) -- Spain has paid lower interest rates in a bond auction that raised 4.5 billion euros ($5.8 billion), suggesting the financial crisis in Cyprus is not affecting other troubled eurozone nations.

The Treasury said it sold 2.33 billion euros in 10-year bonds at an average interest rate of 4.89 percent, down from 4.92 percent at the last such auction Feb.7.

It sold 1.03 billion euros in five-year bonds at a rate of 3.56 percent, compared with 3.57 percent last month. It paid 2.28 percent to sell 1.16 billion euros in two-year bonds, down from 2.54 percent Feb. 21.

Thursday's sale follows a similarly encouraging one in Portugal the day before and indicates frail eurozone nations have so far avoided being destabilized by Cyprus' crisis.

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