Investing.com - Italy saw borrowing costs decline to the lowest level since April 2010 at an auction of six-month government bonds on Wednesday, as markets continue to eye developments in Spain and Greece.
Italy’s Treasury sold EUR7.5 billion worth of six-month government bonds at an average yield of 0.919% earlier in the day, the lowest since April 2010 and down from 1.347% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.65 times versus a "bid-to-cover" ratio of 1.52 in October.
The yield on Italian 10-year bonds stood at 4.66% 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 remained lower against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2923.
European stock markets held on to broad losses. Italy FTSE MIB Index slumped 0.5%, the EURO STOXX 50 dropped 0.6%, France’s CAC 40 declined 0.5%, Germany's DAX shed 0.2%, while London’s FTSE 100 retreated 0.4%.
Italy’s Treasury sold EUR7.5 billion worth of six-month government bonds at an average yield of 0.919% earlier in the day, the lowest since April 2010 and down from 1.347% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.65 times versus a "bid-to-cover" ratio of 1.52 in October.
The yield on Italian 10-year bonds stood at 4.66% 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 remained lower against the U.S. dollar, with EUR/USD shedding 0.15% to trade at 1.2923.
European stock markets held on to broad losses. Italy FTSE MIB Index slumped 0.5%, the EURO STOXX 50 dropped 0.6%, France’s CAC 40 declined 0.5%, Germany's DAX shed 0.2%, while London’s FTSE 100 retreated 0.4%.