Italian bond auction met strong demand; yield on the rise
The Italian Treasury auctioned a total of €3.5 bln in bonds split into a 2-year zero-coupon which sold a total of €2,991 bln at an average yield of 4.712%, the highest since December 2011, and a bid-to-cover of 1.652.
They also sold €916 mln in inflation linked bonds maturing on September 2016 and September 2026. The first was auctioned at an average yield of 5.20% against 4.39% one month ago, with a bid-to-cover ratio of 2.217. The latter met strong demand at 2.431, and an interest rate of 5.29%.
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