Investing.com - Italy saw borrowing costs ease at an auction of five- and ten-year government bonds Thursday, amid growing expectations the European Central Bank will implement policy measures to help stabilize the region’s sovereign debt markets at its next policy meeting in early September.
Italy’s Treasury sold EUR2.5 billion worth of five-year government bonds maturing in June 2017 at an average yield of 4.73% earlier in the day, down from 5.29% at a similar auction last month.
Demand was slightly stronger, with bids exceeding supply 1.46 times, compared to a “bid-to-cover” ratio of 1.34 last month.
Italy sold an additional EUR4.0 billion of 10-year debt maturing in November 2022 at an average yield of 5.82%, down from 5.96% at a similar auction last month.
The “bid-to-cover” ratio was 1.42, up from 1.29 at a similar auction in July.
The yield on Italian 10-year bonds stood at 5.76% following the auction.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.2% to trade at 1.2555.
European stock markets remained mixed. Italy FTSE MIB Index added 0.2%, the EURO STOXX 50 dropped 0.2%, France’s CAC 40 declined 0.15%, Germany's DAX slumped 0.55%, while London’s FTSE 100 retreated 0.1%.
Italy’s Treasury sold EUR2.5 billion worth of five-year government bonds maturing in June 2017 at an average yield of 4.73% earlier in the day, down from 5.29% at a similar auction last month.
Demand was slightly stronger, with bids exceeding supply 1.46 times, compared to a “bid-to-cover” ratio of 1.34 last month.
Italy sold an additional EUR4.0 billion of 10-year debt maturing in November 2022 at an average yield of 5.82%, down from 5.96% at a similar auction last month.
The “bid-to-cover” ratio was 1.42, up from 1.29 at a similar auction in July.
The yield on Italian 10-year bonds stood at 5.76% following the auction.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.2% to trade at 1.2555.
European stock markets remained mixed. Italy FTSE MIB Index added 0.2%, the EURO STOXX 50 dropped 0.2%, France’s CAC 40 declined 0.15%, Germany's DAX slumped 0.55%, while London’s FTSE 100 retreated 0.1%.