BUSINESS
09/27/2011 05:39 EDT | Updated 11/27/2011 05:12 EST

Interest rates up as Spain sells €3.2 billion short-term debt

MADRID - Spain's treasury has sold €3.2 billion ($4.3 billion) in two short-term debt auctions but has had to pay higher interest rates as investors continue to worry over the level of the country's borrowings.

The treasury sold €1.6 billion Tuesday in three-month bills at a yield of 1.7 per cent compared with 1.4 per cent in the last such auction Aug. 23.

It sold €1.62 billion in six-month bills but again had to pay a higher interest rate of 2.7 per cent. In August, the yield was 2.2 per cent.

Demand was more than twice the amount on offer for the three-month bills, while the six-month category was more than four times oversubscribed.