Italian Bond auction results; strong demand along with lower yields
The Italian Tesoro held an auction at 11:00 CET.
Italy sold €3.50 billion in 3-yr debt at an average yield of 4.65 % (5.30% at the previous mid-June sale) with a bid-to-cover ratio of 1.732.
The 10-year bond slipped below the 6% mark during the auction down to 5.93%, but ticked higher at 5.99% at the time of writing.
Moody’s downgrading Italy’s sovereign debt by two notches to Baa2 pushed yields higher ahead of the bond auction. However, the results above showed that Italy successfully passed the test, with lower yields compared to the previous sale for each of its notes on sale.
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