Spain’s treasury sold nearly €3.5 billion of long-term debt yesterday at yields that helped allay fears the struggling euro zone periphery would find it hard to raise long-dated funds in demanding market conditions.

The auction of €2.5 billion of Spain’s 4.85 per cent bond due October 31st, 2020, and €998 million of its 4.2 per cent 2037 bond came in the middle of the treasury’s €3-4 billion target range.