Italian borrowing costs fall to 1.2 percent
At an auction of Italian 6-month BOT bills on Monday, borrowing costs fell to almost 1 percent, the Italian Treasury reported. The auction met solid demand, as Italy sold €8.5 billion in 6-month paper at 1.20 percent, the lowest yield since September 2010, down from 1.97 percent in the previous auction about a month ago. The bid to cover ratio was in line with the previous sale at 1.4 times.
The Italian Tesoro also sold €3.5 billion in bills maturing in December 2012, and was covered at 2.2 times. The average borrowing costs paid for the December 2012 paper was 1.29 percent.
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