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

Published 03/13/2014, 06:40 AM
Italian three-year borrowing costs hit record low at auction
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 Thursday, amid easing concerns over the health of the euro zone’s third-largest economy.

Italy’s Treasury sold €3.5 billion worth of three-year government bonds at an average yield of 1.12%, down from 1.41% at a similar auction last month.

Rome also sold €2 billion of debt maturing in 2021 at an average yield of 2.71%, down from 3.02% last month, as well as €1.5 billion of debt maturing in 2028 at an average yield of 3.85%.

The yield on Italian 10-year bonds stood at 3.399% following the auction.

Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.38% to trade at 1.3956.

European stock markets were mostly higher. Italy FTSE MIB Index picked up 0.7%, the EURO STOXX 50 added 0.15%, France’s CAC 40 rose 0.2%, Germany’s DAX advanced 0.3%, while London’s FTSE 100 declined 0.1%.

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