The Treasury had expected to raise €3.0–4.0 billion via the bond auctions, and demand outstripped supply by over two to one.
The Treasury sold €589.9 million of five-year bonds at an average yield of 3.598 percent, down from 4.193 percent at the last similar auction held on March 15th, 2012, the Bank of Spain said in a statement.
It sold €660.5 million in eight-year bonds at an average yield of 4.477 percent, down from 5.517 percent from the last similar auction held on November 22nd.
The Treasury also raised €3.06 billion in three-year bonds at an average yield of 3.019 percent.
This auction was not comparable to previous sales of three-year-bonds since it had a fixed coupon of 3.3 percent instead of a coupon of 3.75 percent in the previous operations.
The risk premium or spread — the extra rate demanded by investors in Spanish 10-year bonds over the rate offered by equivalent German bonds — stood at 354 basis points shortly after the bond auction, down from 363 basis points when markets opened on Thursday.