Spain today auctioned short term bills and was met with strong demand and decline in borrowing costs, especially after Moody's said last night that the easier deficit reduction target this year will not affect the rating.

Spain allotted 1.45 billion of 518-Day bills with the cover ratio of 2.39 versus 2.88 at the February auction. The average yield also declined to 1.711% from 2.308% in February.

The nation sold 3.5982 billion euros of 357-day bills maturing in March 15, 2013 of the total 7.69252 billion tendered with the cover ratio of 2.14 times versus 2.27 the previous February auction. The average yield was 1.418% down from February's 1.899%.