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

Published 04/29/2014, 05:39 AM
Italy sells 10-year debt at record-low yield
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Investing.com - Italy saw borrowing costs fall to the lowest levels on record at an auction of ten-year government bonds on Tuesday, as investors continued to gauge the health of the euro zone’s third-largest economy.

Italy’s Treasury sold €3 billion worth of ten-year debt at an average yield of 3.22%, down from 3.29% at a similar auction last month.

The yield on Italy's 10-Year bond stood at 3.178% following the auction, the lowest since January 2006.

Rome also sold €3.5 billion of five-year debt at an average yield of 1.84%, compared to a yield of 1.88% in March.

Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.13% to trade at 1.3868.

Meanwhile, European stock markets remained higher. Italy FTSE MIB advanced 1.2%, the Euro Stoxx 50 rose 0.55%, France’s CAC 40 inched up 0.1%, Germany's DAX climbed 0.65%, while London’s FTSE 100 tacked on 0.5%.

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