(Treasury corrects allocated amount of 3-month T-bills to 1.1 bln euros from 1 bln euros, yield on 3-month bill to 0.162 percent from 0.155 percent and bid-to-cover ratio on 3-month bill to 4.1 from 4.5.)
MADRID, Aug 27 (Reuters) - Spain sold 4.1 billion euros ($5.35 billion) of short-term debt on Tuesday, just over its targeted range, as investors remained upbeat about the country while political tensions were on the rise in peer euro zone troubled country Italy.
The Spanish Treasury had aimed to sell between 3 and 4 billion euros of 3- and 9-month T-bills.
It sold 1.1 billion euros of the 3-month T-bill at an average yield of 0.162 percent, down from 0.442 percent when Spain last sold the paper on July 23. Demand for the paper was 4.1 times supply, compared to 4 times last month.
The 9-month T-bill sold 3 billion euros, at an average yield of 1.089 percent compared to 1.152 percent at the previous auction. The bid-to-cover ratio for the bill was 1.9 compared to 2.3 at the last auction.
Spain has already completed more than two thirds of its annual funding target and now plans to cut monthly bond issuance by a third. ($1 = 0.7477 euros) (Reporting by Sarah White, Editing by Julien Toyer, John Stonestreet)