After a successful bond selling by Spain last week, the Treasury is preparing to sell 10-year notes in two auctions on January 20 as a part of its plan to raise as much as 93.8 billion euros in 2011 to lower the third-budget deficit in the euro area and calm down the rise in borrowing cost.

People familiar with the matter said bond yields may increase to 6.85% from 4.85% of October 2020 notes.