Spain's 12-month borrowing costs hit 3-year low.

Spain sold €3.034B of 12-month T-bills at an average yield of just 0.994% Tuesday, the lowest rate in more than three years as borrowing costs continue to fall on investors' apparently unshakable faith in the ECB's willingness to backstop Spanish and Italian sovereign debt. Yields on comparable notes hit 5% last June. Meanwhile, core inflation in Spain fell to 1.9% in April, below economists' projections and the lowest level in eight months, as the country's economy continues to stumble