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Bond yields fall to record low as Italy sells 3-year debt

Published 01/13/2014, 05:29 AM
Borrowing costs fall to record low as Italy sells 3-year debt
EUR/USD
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Investing.com - Italy saw borrowing costs fall to a record low at an auction of three-year government bonds on Monday, amid easing concerns over the health of the euro zone’s third-largest economy.

Italy’s Treasury sold EUR4 billion worth of three-year government bonds at an average yield of 1.51%, down from 1.79% at a similar auction last month.

Rome also sold EUR2.5 billion of debt maturing in 2021 at an average yield of 3.17%, as well as EUR1.695 billion of debt maturing in 2028 at an average yield of 4.26%.

The yield on Italian 10-year bonds stood at 3.937% following the auction. The euro held on to mild losses against the U.S. dollar following the auction, with EUR/USD easing down 0.03% to trade at 1.3665.

Meanwhile, European stock markets remained higher. Italy FTSE MIB Index rose 0.6%, the EURO STOXX 50 advanced 0.35%, France’s CAC 40 inched up 0.25%, Germany’s DAX tacked on 0.3%, while London’s FTSE 100 added 0.15%.

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