Investing.com - Italy saw borrowing costs fall to the lowest level since October 2010 at an auction of three-year government bonds on Wednesday, as fears over the handling of the euro zone's financial crisis continued to dominate market sentiment.
Italy’s Treasury sold EUR3.5 billion worth of three-year government bonds at an average yield of 2.64% earlier in the day, down from 2.86% at a similar auction last month.
Demand weakened slightly, with bids exceeding supply 1.50 times, compared to a “bid-to-cover” ratio of 1.67 last month.
The yield on Italian 10-year bonds stood at 4.93% following the auction.
Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.35% to trade at 1.2748.
European stock markets remained mixed. Italy FTSE MIB Index was little changed, the EURO STOXX 50 was flat, France’s CAC 40 dipped 0.1%, Germany's DAX was flat, while London’s FTSE 100 fell 0.5%.
Italy’s Treasury sold EUR3.5 billion worth of three-year government bonds at an average yield of 2.64% earlier in the day, down from 2.86% at a similar auction last month.
Demand weakened slightly, with bids exceeding supply 1.50 times, compared to a “bid-to-cover” ratio of 1.67 last month.
The yield on Italian 10-year bonds stood at 4.93% following the auction.
Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.35% to trade at 1.2748.
European stock markets remained mixed. Italy FTSE MIB Index was little changed, the EURO STOXX 50 was flat, France’s CAC 40 dipped 0.1%, Germany's DAX was flat, while London’s FTSE 100 fell 0.5%.