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Italy 2-year Bond Yield Rises

4/24/2012 6:41 AM ET

Italian borrowing costs increased at a debt auction on Tuesday as investor confidence remained under pressure owing to troubles elsewhere in the single currency bloc.

The Italian Treasury sold EUR 2.5 billion of its January 2014 zero coupon bond or CTZ at an average yield of 3.355 percent, up from 2.352 percent paid at the previous sale on March 27. The agency planned to raise between EUR 1.5 billion and EUR 2.5 billion.

The bid-to-cover ratio, which indicates demand, fell to 1.80 from 1.86.

The treasury also sold two types of inflation-linked bonds, raising as much as EUR 943 million. The agency was targeting proceeds between EUR 500 million and EUR 1 billion.

The yield on the 2019 bond was 4.32 percent, while that on the 2017 debt was 3.88 percent. Demand was 2.24 times the offer for the 7-year debt, while investors bid 2.13 times for the 5-year bond.

by RTT Staff Writer

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