Spanish borrowing costs fall after Draghi's action plan

Spanish borrowing costs have fallen sharply at the country's latest debt auction, with demand also strong, after the European Central Bank (ECB) acted to tackle the funding crisis.

Spain raised €4.8bn (£3.84bn) after selling three and 10-year bonds in the market. The country's 10-year bonds saw strong demand, with investors bidding for nearly three times the amount on offer. Crucially, the average yield was 5.66%, down from 6.65% at the previous auction, and below the 5.95% average for the year. The Spanish government's borrowing costs have fallen alongside other European nations since the ECB announced its bond-buying plan. Investors also bid for 1.6 times the amount of three-year bonds on offer, with an average yield of 3.85%, slightly higher than the ye...