Italy paid more to borrow funds for six months at an auction on Tuesday as investor confidence remained hurt by the concerns over a possible exit of Greece from euro area and the banking sector problems in Spain.
The Italian Treasury raised the targeted amount of EUR 8.5 billion from the sale of its 6-month bills known as BoTs. The auction attracted bid totaling EUR 13.673 billion.
The yield on the 183-day paper shot up to 2.104 percent from 1.772 percent in the previous sale on April 26. The bid-to-cover ratio, which indicates demand, fell to 1.61 from 1.71.
The agency is set to offer EUR 6.25 billion of 5 and 10-year bonds or BTPs. Yesterday, the country raised EUR 3.5 billion from the sale of its new May 2014 zero coupon bonds or CTZs at 4.037 percent yield.
by RTT Staff Writer
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