Investing.com - Italy saw borrowing costs rise to the highest level since mid-August at an auction of 12-month government bonds on Wednesday, amid ongoing concerns over the handling of the euro zone’s debt crisis.
Italy’s Treasury sold EUR8.0 billion worth of 12-month government bonds at an average yield of 1.941%, up from 1.692% at a similar auction last month.
Demand strengthened slightly, with bids exceeding supply 1.77 times versus a "bid-to-cover" ratio of 1.65 in September.
The country also sold EUR3.0 billion worth of three-month government bonds at an average yield of 0.765%, up from 0.700% at a similar auction last month.
Italy’s Treasury managed to sell the full targeted amount of EUR11.0 billion of government bonds. The yield on Italian 10-year bonds stood at 5.10% following the auction.
Meanwhile, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2867.
European stock markets were broadly lower. Italy FTSE MIB Index fell 0.5%, the EURO STOXX 50 declined 0.5%, France’s CAC 40 dipped 0.35%, Germany's DAX retreated 0.3%, while London’s FTSE 100 eased down 0.45%.
Italy’s Treasury sold EUR8.0 billion worth of 12-month government bonds at an average yield of 1.941%, up from 1.692% at a similar auction last month.
Demand strengthened slightly, with bids exceeding supply 1.77 times versus a "bid-to-cover" ratio of 1.65 in September.
The country also sold EUR3.0 billion worth of three-month government bonds at an average yield of 0.765%, up from 0.700% at a similar auction last month.
Italy’s Treasury managed to sell the full targeted amount of EUR11.0 billion of government bonds. The yield on Italian 10-year bonds stood at 5.10% following the auction.
Meanwhile, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2867.
European stock markets were broadly lower. Italy FTSE MIB Index fell 0.5%, the EURO STOXX 50 declined 0.5%, France’s CAC 40 dipped 0.35%, Germany's DAX retreated 0.3%, while London’s FTSE 100 eased down 0.45%.