Investing.com - Italy saw borrowing costs ease at an auction of five- and ten-year government bonds Thursday, as markets continued to focus on developments in the euro zone amid sustained concerns over the handling of the debt crisis in Spain and in Greece.
Italy’s Treasury sold EUR2.71 billion worth of five-year government bonds maturing in June 2017 at an average yield of 4.09% earlier in the day, down from 4.73% at a similar auction last month.
Demand was slightly weaker, with bids exceeding supply 1.38 times, compared to a “bid-to-cover” ratio of 1.46 last month.
Italy sold an additional EUR2.97 billion of 10-year debt maturing in November 2022 at an average yield of 5.24%, down from 5.82% at a similar auction last month.
The “bid-to-cover” ratio was 1.33, down from 1.42 at a similar auction in August.
The yield on Italian 10-year bonds stood at 5.30% 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 modest losses against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2855.
European stock markets remained mildly higher. Italy FTSE MIB Index added 0.2%, the EURO STOXX 50 rose 0.35%, France’s CAC 40 added 0.55%, Germany's DAX advanced 0.45%, while London’s FTSE 100 eased up 0.3%.
Italy’s Treasury sold EUR2.71 billion worth of five-year government bonds maturing in June 2017 at an average yield of 4.09% earlier in the day, down from 4.73% at a similar auction last month.
Demand was slightly weaker, with bids exceeding supply 1.38 times, compared to a “bid-to-cover” ratio of 1.46 last month.
Italy sold an additional EUR2.97 billion of 10-year debt maturing in November 2022 at an average yield of 5.24%, down from 5.82% at a similar auction last month.
The “bid-to-cover” ratio was 1.33, down from 1.42 at a similar auction in August.
The yield on Italian 10-year bonds stood at 5.30% 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 modest losses against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2855.
European stock markets remained mildly higher. Italy FTSE MIB Index added 0.2%, the EURO STOXX 50 rose 0.35%, France’s CAC 40 added 0.55%, Germany's DAX advanced 0.45%, while London’s FTSE 100 eased up 0.3%.