The Spanish government sold €3.39bn (£2.7bn) in 12- and 18-month bonds, beating the top end of its target to sell €3bn, but the interest cost on the loans almost doubled.
The interest rate on the 12-month bills shot up to 5.07pc from 2.98pc at the last such auction on May 14. The rate on the 18-month bills soared to 5.1pc from 3.3pc.
In the secondary market, where previously issued debt is traded, the yield on benchmark 10-year Spanish bonds remained perilously high at 7.13pc.
The bond auction was significant because it was Spain's first debt sale since announcing it would seek a €100bn EU bailout for its banks last week, becoming the fourth eurozone member to request financial assistance.
The yield on the country's 10-year bonds touched 7pc last week and soared above that level yesterday, as the Greek election result failed to calm markets, despite voters returning a pro-bailout party.
Spain is also due to sell another €2bn of bonds on Thursday.
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