Spain today sold 5.4 billion euros of Treasury bills even as borrowing costs are surging, yet the bond sale missed slightly the target which raises the question further for the fiscally strapped nation.

The Treasury sold 3.96 billion euros of one-year bills at an average yield of 2.695% and 1.46 billion euros of 18-month debt at an average yield of 3.26%. The yields are higher from the previous auctions which were sold at a yield of 2.546% and 3.095% respectively and missed the maximum target set at 5.5 billion euros of debt.

The bid-to-cover ratio for the one-year bills was 2.85 times the amount sold, while for the 18-month debt it was 3.91 times.