Reply #15: europe: Interest rates soar in Spanish bond auction

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http://hosted.ap.org/dynamic/stories/E/EU_SPAIN_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-07-19-06-14-06

MADRID (AP) -- Spain paid sharply higher interest rates in two short-term debt auctions Tuesday as tensions over Europe's debt crisis remained acute ahead of a summit of EU leaders.

The Treasury sold euro3.9 billion ($5.5 billion) in 12-month bills with the average interest rate jumping to 3.7 percent from 2.7 percent in the last such auction June 14.

The Treasury also auctioned euro660 million in 18-month bills at a rate of 3.9 percent, up from 3.3 percent in June.

The 12-month sale was two-times oversubscribed while demand was 5.5 times the amount offered for the 18-month bills.