MADRID — Spain and Italy gave financial markets a boost Thursday as they successfully raised nearly $27.98 billion in two keenly watched debt auctions that showed renewed investor confidence in the countries’ attempts to get a grip on their debt problems.
Spain sold nearly $12.7 billion in auctions of bonds maturing in 2015 and 2016, with demand strong and the amount sold double the maximum sought. Italy saw its borrowing costs drop sharply as it sold $15 billion in what was also its first test of market sentiment this year.
Both debt-laden countries have been the focus of worries that they might be dragged further into the crisis threatening the 17 countries that use the euro as their currency that has already forced Greece, Ireland and Italy to seek billions in bailout money.
Buyers also took $10.8 billion in 12-month Italian bonds at a yield of 2.735 percent, sharply down from last month’s rate of 5.95 percent. They also bought $4.45 billion in bonds maturing in May at 1.644 percent interest, down from 3.251 percent last time.
The rate for the Spanish 10-year bond also dropped back to 5.15 percent after opening at 5.32 percent.
Meanwhile, the European Central Bank maintained its lending rate at 1 percent Thursday, with President Mario Draghi saying there were “tentative signs of stabilization of activity at low levels” in the troubled eurozone.
Boosting liquidity has been the institution’s principal tool against the crisis as it aims to encourage banks to continue lending to companies so they can operate and grow.
