By Simon Miller

Spain's debt sale was slightly up this morning as investors tread cautiously ahead of the European Central Bank (ECB) interest rate decision and update this lunchtime.

The country saw just over €3bn (£2.36bn) sold in three separate auctions of medium and long-term debt with an average rate of 6.647% for 10-year bonds compared with 6.43% last month. Demand dropped as well with 2.4 bidders compared with 3.2 in July.

Spain also sold four-year debt with yields of 5.971% versus 5.536% and two-year bonds at 4.774% compared with 3.592%.

Investors are cautious ahead of the ECB update starting at 12.45BST as they await to see if its governor Mario Draghi will announce any further plans to get the eurozone out of its crisis.

The bank could expand its securities markets programme which it buys distressed government bonds but analysts believe that the ECB will only intervene if a nation asks for help, a move which Spain has resisted.

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