Spain borrowing costs jump at bill auction (by MarketWatch)

FRANKFURT (MarketWatch) -- Spain's Treasury sold 3.2 billion euros ($4.4 billion) of short-term bills on Tuesday, with borrowing costs jumping as Spanish bonds came under renewed pressure on fears European leaders remain unable to contain the euro-zone debt crisis. Spain sold 2.6 billion euros of 12-month bills, news reports said, producing an average yield of 5.02%, up from 3.61% in September. Bids exceeded supply 2.1 times, down from 2.3 times in September, reports said. The Treasury also sold 558 million euros of 18-month T-bills at an average yield of 5.16%, up from 3.80% in October, according to reports. Demand was strong, with bids exceeding supply six times versus 4.3 times in the previous auction. Spain's 10-year government bond yield (es:10yr_esp) rose back above the 6% level for the first time since early August on Monday and rose by around 18 basis points Tuesday to 6.26%, according to FactSet Research.