The Spanish government announced that it sold 12-month and 18-month Treasury bills in an auction today to repay the 2.47 billion euros debt due this month.

The 12-month T-bills were sold at a yield of 2.221% which is lower than the prior 2.303 due to the high demand on the bills that was 1.95 times the bills sold, whereas the 18-month bills were sold at 2.331% relative to the preceding auction's yield of 2.837%.

With 11.2% of GDP, Spain has the third largest budget deficit in the euro area but the government mentioned that it will face no problems in paying July's redemptions.