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Spain debt sale costs to fall as markets bet on aid package

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By Nigel Davies MADRID (Reuters) - Spain's borrowing costs will likely fall at a bond auction on Thursday, drawing investors on hopes the country will soon sign up for a rescue package, though their patience may be wearing thin. The Treasury will sell between 3 billion euros (2.41 billion pounds) and 4 billion euros split between two short-dated bonds and one five-year issue, a week after the government presented a budget for 2013 that aims to chop away at the public deficit. Spain is at the sharp end of the euro zone debt crisis as it weighs applying for an aid package that would pave the way for the European Central Bank to buy its bonds. Its debt yields soared over the summer and then...

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