Spain sees strong demand in 50-year bond offer

Government members and members of parliament listen to the speech of the Spain's Treasury and Public Administrations Minister during the 2016 budget draft debate at the Spanish parliament in Madrid on August 25, 2015Spain said Wednesday the launch of its first 50-year bond in two years drew strong investor demand, as it became the latest eurozone country to jump on the long-bond bandwagon. The Spanish Public Treasury sold 3.0 billion euros ($3.4 billion) of the bond maturing in 2066 via a syndication which drew orders worth 10.4 billion euros, the economy ministry said in a statement. Companies and governments are increasingly borrowing at longer maturities in Europe as the European Central Bank’s stimulus measures have pushed down bond yields and lowered borrowing costs, forcing investors to seek longe-dated debt to generate returns.

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