3.58%
Probably bought by banks on orders from the Spanish government.
The ECB will buy them back at par when they fall far enough.
* * * * * J B K * * * * *
San Francisco
To that end, all eyes were on the sale by Spain of five-year bonds, lest the market signal it would shun Madrid's debt. On balance the €2.4bn sale was a success, in that the bids for the notes were higher than seen in the past. However, the yield paid was significantly higher than for the previous auction of similarly dated notes.
It was "a classic example of there being a price for everything", said Marc Ostwald at Monument Securities. "[The] 3.58 per cent yield versus 2.80 at the last sale is a reminder of the current malaise and the rising cost of servicing debt. But the 3.58 yield was about 5-6 basis points below the secondary market yield level at the time of the auction, and a cover of 2.35 times shows genuine demand."
http://www.ft.com/cms/s/0/e7112456-58d0-11df-90da-00144feab49a.html?nclick_check=1
