France’s borrowing costs fall in solid long-term bond auction that raises euro 7.4bn

 France’s borrowing costs fell in a bond auction Thursday that sold €7.4 billion ($9.7 billion) in long-term debt.

France has a significant amount of debt, and some investors are concerned it isn’t serious enough about reducing it. They are closely following the country’s presidential election campaign for signs that the next leader will limit spending and revive growth.

In the largest issue in France’s sale, the yield, or interest rate, on a 10-year bond edged down to 2.96 percent from 2.98 percent when it was last issued in April.

Another class of 10-year bond saw a far more significant drop to 2.85 percent from 3.29 percent when it was issued in January.

In another sign of investor confidence, demand was high and the amount of money raised was at the very top of the range set out by the French Treasury.

France’s borrowing costs fall in solid long-term bond auction that raises euro 7.4 bn($9.7bn) - The Washington Post

Dutch government to issue first US dollar bonds

The Netherlands' treasury is auctioning euro2 billion ($2.6 billion) worth of 5-year bonds denominated in dollars on Thursday, the first time the Dutch state has issued a dollar bond, even before the introduction of the euro.

Spokesman Ben Feiertag said Thursday the government has been preparing the move for months in order to save money and "broaden its base of investors."

He acknowledged it would be difficult for the Dutch government to save much money on the issue, given its AAA credit rating and relatively low debt and deficit levels. The treasury sold a larger amount of 5-year euro bonds at a yield of 1.347 percent this week.

For more: Dutch government to issue first US dollar bonds - CBS News

Spain sells $5.2 billion at debt auction, demand strong despite concerns over Greece -

Spain successfully raised €4 billion ($5.2 billion) at a bond auction Thursday, with investor appetite strong despite jitters over the economy and the Greek debt crisis, while Parliament cleared a bill to strengthen the banking sector.

The Treasury sold €2.3 billion in three-year bonds at an average interest rate of 3.3 percent, up from 2.9 percent at a comparable auction on Feb 2.

It also sold €733 million in another 3-year bond with a different coupon rate, and about €1.1 billion in bonds maturing in 2019. There were no comparable interest rates for these.

For more: Spain sells $5.2 billion at debt auction, demand strong despite concerns over Greece - The Washington Post

France Seeks Lower Yield at Bond Sale - by Mark Deen and Paul Dobson

France plans to sell as much as 8 billion euros ($10.4 billion) of debt today in the country’s first test this year of investor appetite for its bonds as credit companies threaten to cut the nation’s AAA rating.

“It’s going to be a tough one,” said Michael Leister, a fixed-income strategist at DZ Bank AG in Frankfurt. “The rating is an evergreen topic. France has been suffering since the second half of December against its AAA peers. But given the importance of the signal from this first auction, I guess it will go alright.”

For more: France Seeks Lower Yield at Bond Sale - Bloomberg