MADRID -- Spain raised nearly €3.5 billion ($4.3 billion) in an oversubscribed auction of 10- and 30-year Treasury bonds, although at sharply higher interest rates.

Markets were relieved by the result, with the euro and stock markets rising and borrowing costs falling.

The Treasury sold €3 billion in 10-year bonds Thursday at an average interest rate 4.86%, up from 4.045% in the last auction in May.

It sold €479 million in 30-year bonds at an average interest rate of 5.9%, up from 4.8% in March.

The Treasury had hoped to issue between €2.5 billion and €3.5 billion in long-term debt.

The auctions were oversubscribed 1.89 and 2.45 times, respectively, suggesting investors retain an appetite for Spanish debt but demand a higher yield.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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