Thursday, 29 November 2012 17:51
MILAN: Italy's borrowing costs dropped sharply in an auction of medium- and long-term bonds on Thursday which raised nearly 6.0 billion euros ($7.8 billion), reflecting increased investor confidence.
The Italian Treasury sold 3.0 billion euros in bonds coming due in 2017 at a rate of 3.23 percent compared to 3.80 percent for a similar sale last month.
It also sold 2.98 billion euros in bonds due in 2022 at 4.45 percent from 4.92 percent in October, the Bank of Italy said.
Italy held two successful auctions on Tuesday and Wednesday.
Il Sole 24 Ore business daily said the sales showed a "return to normal", which has been reinforced by Merrill Lynch Wealth Management's announcement that it was returning to the Italian debt market, seen as too risky before.
Investors have hailed the reforms undertaken by Prime Minister Mario Monti's government and have been buoyed by an agreement earlier this week on funding for Greece.
Copyright AFP (Agence France-Presse), 2012