Investing.com - Italy saw borrowing costs fall to the lowest level since September at an auction of 12-month government bonds on Tuesday, despite ongoing concerns over the handling of the euro zone’s debt crisis.
Italy’s Treasury sold the full-targeted amount of EUR6.5 billion worth of 12-month government bonds at an average yield of 1.762%, the lowest since September and down from 1.941% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.76 times versus a "bid-to-cover" ratio of 1.77 in October.
The yield on Italian 10-year bonds stood at 5.05% following the auction.
Meanwhile, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.31% to trade at 1.2671.
European stock markets were broadly lower. Italy FTSE MIB Index fell 0.5%, the EURO STOXX 50 declined 0.75%, France’s CAC 40 dropped 0.9%, Germany's DAX retreated 0.7%, while London’s FTSE 100 slumped 0.85%.
Italy’s Treasury sold the full-targeted amount of EUR6.5 billion worth of 12-month government bonds at an average yield of 1.762%, the lowest since September and down from 1.941% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.76 times versus a "bid-to-cover" ratio of 1.77 in October.
The yield on Italian 10-year bonds stood at 5.05% following the auction.
Meanwhile, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.31% to trade at 1.2671.
European stock markets were broadly lower. Italy FTSE MIB Index fell 0.5%, the EURO STOXX 50 declined 0.75%, France’s CAC 40 dropped 0.9%, Germany's DAX retreated 0.7%, while London’s FTSE 100 slumped 0.85%.