Italy's borrowing costs for ten-year funds fell below 6 percent at a debt auction on Monday as investors are looking forward to some crucial moves from the European Central Bank, which holds its rate-setting session later in the week.
The Italian Treasury sold a total EUR 5.48 billion bonds maturing in 2015, 2017 and 2022, against a maximum target of EUR 5.5 billion.
The country raised EUR 2.5 billion from the sale of its benchmark 10-year bond due September 2022, which matched the top target for the sale.
The yield on the 10-year bond dropped to 5.96 percent from 6.19 percent on June 28. The bid-to-cover ratio, which mirrors demand, edged up to 1.29 from 1.28.
The 5-year debt fetched a yield of 5.29 percent, down from 5.84 percent in the previous sale on June 28. Demand was 1.34 times the offer, weaker than 1.54 times last month.
by RTT Staff Writer
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