Spanish government borrowing rates keep dropping

(AP) The Spanish government's borrowing rates have continued to drop as it raised 5.8 billion ($7.7 billion) in the first debt auction of the year.

It sold 3.39 billion in two-year bonds at an average rate of 2.48 percent, down from 3.35 percent in a comparable sale Dec. 13.

It sold 1.95 billion in bonds maturing in 2018 at 3.99 percent, down from 4.68 percent on Nov. 8.

It placed 469 million in 2026 bonds at 5.55 percent, down from 6.19 percent July 21, 2011.

Spain's borrowing rates have plunged since August, when investors worried the country might be unable to handle its debts. On Thursday, the 10-year borrowing rate a gauge of investor concern was down 0.13 percentage points to 4.98 percent, from above 7 percent in August.