Italy's one-year funding costs plunged to the lowest level since the introduction of the euro as the European Central Bank's rate reduction boosted demand for debts with higher return.
At an auction on Friday, the treasury raised EUR 7 billion of 365-day bills at a cost of 0.70 percent. The yield declined from 0.92 percent at a similar issue in the previous month.
Investors bid for 1.16 times the amount offered, but slightly down from 1.64 times last month. The treasury also sold EUR 3 billion flexible T-bills, with 219 days left for maturity.
The ECB last week reduced the main refinancing rate by 25 basis points to a record low 0.50 percent. The previous change in euro area interest rates was a quarter-point reduction in July 2012.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.