Investing.com - Italy saw borrowing costs rise to the highest level since October 2012 at an auction of three-year government bonds on Thursday, amid ongoing 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 2.72%, the highest since October and up from 2.33% at a similar auction last month.
Rome also sold EUR1.5 billion of 15-year debt at an average yield of 4.88% compared to a yield of 4.67% at a previous auction.
The yield on Italian 10-year bonds stood at 4.525% following the auction.
Data released earlier in the week showed that the recession in Italy was deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
The euro was lower against the U.S. dollar following the auction, with EUR/USD easing down 0.15% to trade at 1.3289.
Meanwhile, European stock markets were lower. Italy FTSE MIB Index fell 0.95%, the EURO STOXX 50 dipped 0.2%, France’s CAC 40 shed 0.5%, Germany’s DAX declined 0.25%, while London’s FTSE 100 eased down 0.35%.
Italy’s Treasury sold EUR4 billion worth of three-year government bonds at an average yield of 2.72%, the highest since October and up from 2.33% at a similar auction last month.
Rome also sold EUR1.5 billion of 15-year debt at an average yield of 4.88% compared to a yield of 4.67% at a previous auction.
The yield on Italian 10-year bonds stood at 4.525% following the auction.
Data released earlier in the week showed that the recession in Italy was deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
The euro was lower against the U.S. dollar following the auction, with EUR/USD easing down 0.15% to trade at 1.3289.
Meanwhile, European stock markets were lower. Italy FTSE MIB Index fell 0.95%, the EURO STOXX 50 dipped 0.2%, France’s CAC 40 shed 0.5%, Germany’s DAX declined 0.25%, while London’s FTSE 100 eased down 0.35%.