Investing.com - Italy saw borrowing drop sharply at an auction of three- and 12-month government bonds on Wednesday, amid optimism policymakers in the euro zone will do more to stem the region’s ongoing debt crisis.
Italy’s Treasury sold EUR3 billion worth of three-month government bonds at an average yield of 0.700% earlier in the day, down from 0.860% at a similar auction last month.
Demand was decent, with bids exceeding supply 2.25 times versus a "bid-to-cover" ratio of 2.49 in August.
The country also sold EUR9 billion of 12-month government bonds at an average yield of 1.692%, down sharply from 2.767% at a similar auction last month.
Italy’s Treasury planned to sell EUR12 billion of government bonds on Wednesday.
The yield on Italian 10-year bonds stood at 5.04% following the auction.
Meanwhile, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.23% to trade at 1.2885.
European stock markets held on to gains. Italy FTSE MIB Index rose 0.75%, the EURO STOXX 50 climbed 0.75%, France’s CAC 40 added 0.6%, Germany's DAX advanced 0.7%, while London’s FTSE 100 eased up 0.3%.
Italy’s Treasury sold EUR3 billion worth of three-month government bonds at an average yield of 0.700% earlier in the day, down from 0.860% at a similar auction last month.
Demand was decent, with bids exceeding supply 2.25 times versus a "bid-to-cover" ratio of 2.49 in August.
The country also sold EUR9 billion of 12-month government bonds at an average yield of 1.692%, down sharply from 2.767% at a similar auction last month.
Italy’s Treasury planned to sell EUR12 billion of government bonds on Wednesday.
The yield on Italian 10-year bonds stood at 5.04% following the auction.
Meanwhile, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.23% to trade at 1.2885.
European stock markets held on to gains. Italy FTSE MIB Index rose 0.75%, the EURO STOXX 50 climbed 0.75%, France’s CAC 40 added 0.6%, Germany's DAX advanced 0.7%, while London’s FTSE 100 eased up 0.3%.