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Bond yields fall to record low as Italy sells 5-and-10 year debt

Published 07/30/2014, 05:33 AM
Italian 10-year bond yields fall to record low
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Investing.com - Italy saw borrowing costs fall to the lowest levels on record at an auction of five-and-ten-year government bonds on Wednesday, as investors continued to gauge the health of the euro zone’s third-largest economy.

Italy’s Treasury sold €2.5 billion worth of ten-year debt at an average yield of 2.6%, down from 2.81% at a similar auction last month.

Rome also sold €3 billion of five-year debt at an average yield of 1.2%, compared to a yield of 1.35% in June.

The yield on Italy 10-Year bonds stood at 2.639% following the auction, while the euro held on to losses against the U.S. dollar, with EUR/USD falling 0.02% to trade at 1.3406.

Meanwhile, European stock markets were mixed. Italy FTSE MIB Index tacked on 0.1%, the DJ Euro Stoxx 50 advanced 0.1%, France’s CAC 40 slumped 0.1%, Germany's DAX dipped 0.1%, while London’s FTSE 100 inched up 0.1%.

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