Investing.com - Italy saw borrowing costs fall to the lowest level since March at an auction of 12-month government bonds on Wednesday, despite growing uncertainty over the country’s political outlook.
Italy’s Treasury sold the full-targeted amount of EUR6.5 billion worth of 12-month government bonds at an average yield of 1.456%, the lowest since March and down from 1.762% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.94 times versus a "bid-to-cover" ratio of 1.76 in November.
The yield on Italian 10-year bonds stood at 4.68% following the auction.
Meanwhile, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.1% to trade at 1.3019.
European stock markets were higher. Italy FTSE MIB Index rose 0.5%, the EURO STOXX 50 eased up 0.2%, France’s CAC 40 was little changed, Germany's DAX advanced 0.3%, while London’s FTSE 100 tacked on 0.25%.
Italy’s Treasury sold the full-targeted amount of EUR6.5 billion worth of 12-month government bonds at an average yield of 1.456%, the lowest since March and down from 1.762% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.94 times versus a "bid-to-cover" ratio of 1.76 in November.
The yield on Italian 10-year bonds stood at 4.68% following the auction.
Meanwhile, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.1% to trade at 1.3019.
European stock markets were higher. Italy FTSE MIB Index rose 0.5%, the EURO STOXX 50 eased up 0.2%, France’s CAC 40 was little changed, Germany's DAX advanced 0.3%, while London’s FTSE 100 tacked on 0.25%.