Italy sells €5.25 bln in bonds as concerns abate
The Italian Treasury sold a total of €5.25 bln in bonds on Monday, including a bond with more than a 10-year maturity. Italy attracted strong demand as concerns over its ability to finance its debt subsided slightly, and today’s sale was the first time in seven months that Italy sold bonds with this maturity.
The Tesoro sold €3.5 billion, at the maximum targeted amount, in a three-year bond at an average cost of 3.91 percent against 3.89 percent at a previous sale in April. The bid-to-cover ratio was 1.5 against 1.4 times at the last sale which confirmed investor’s interest for the Italian paper. Italy also sold €651 mln of a 5 percent 2022 bond at a yield of 5.66 percent, and €557 mln of 2025 paper at 5.9 percent. The 2025 debt was last sold in October 2011. They also auctioned €542 mln in 2020 bonds at an average yield of 5.33 percent which brought the total amount sold at the maximum target of€5.25 bln.
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