Investing.com - Italy saw borrowing costs collapse at an auction of five- and ten-year government bonds Tuesday, as markets continued to focus on developments in the euro zone amid sustained concerns over the handling of the debt crisis in Spain and in Greece.
Italy’s Treasury sold EUR3 billion worth of ten-year debt maturing in November 2022 at an average yield of 4.92%, the lowest since May 2011 and down from 5.24% at a similar auction last month.
The “bid-to-cover” ratio was 1.43, up from 1.33 at a similar auction in September.
Rome also sold EUR4 billion of five-year government bonds maturing in June 2017 at an average yield of 3.80%, the lowest since May 2011 and down from 4.09% at a similar auction last month.
The yield on Italian 10-year bonds stood at 4.97% 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 held on to gains against the U.S. dollar, with EUR/USD adding 0.38% to trade at 1.2953.
European stock markets remained higher. Italy FTSE MIB Index rallied 1%, the EURO STOXX 50 rose 0.95%, France’s CAC 40 added 0.8%, Germany's DAX climbed 0.85%, while London’s FTSE 100 advanced 0.65%.
Italy’s Treasury sold EUR3 billion worth of ten-year debt maturing in November 2022 at an average yield of 4.92%, the lowest since May 2011 and down from 5.24% at a similar auction last month.
The “bid-to-cover” ratio was 1.43, up from 1.33 at a similar auction in September.
Rome also sold EUR4 billion of five-year government bonds maturing in June 2017 at an average yield of 3.80%, the lowest since May 2011 and down from 4.09% at a similar auction last month.
The yield on Italian 10-year bonds stood at 4.97% 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 held on to gains against the U.S. dollar, with EUR/USD adding 0.38% to trade at 1.2953.
European stock markets remained higher. Italy FTSE MIB Index rallied 1%, the EURO STOXX 50 rose 0.95%, France’s CAC 40 added 0.8%, Germany's DAX climbed 0.85%, while London’s FTSE 100 advanced 0.65%.