MILAN: Italy paid a record low yield of 0.495 percent to borrow over a year at a bills auction on Wednesday as easing measures the European Central Bank unveiled last week spurred demand for higher-yielding debt from lower-rated euro zone issuers.
The Treasury sold the planned 6.5 billion euros ($8.85 billion) in bills maturing in June 2015, attracting bids for 1.7 times that amount.
A month ago Italy paid 0.65 percent to sell 12-month bills at an auction that was covered 1.6 times.
Wednesday's auction yield is the lowest since at least the introduction of the euro.
The Treasury returns to the market on Thursday offering between 6.5 billion and 8.5 billion euros in three-, seven and 30-year bonds.
"Backed by the ECB measures, primary market activity remains favorable with record-low funding costs," UniCredit economists said in a note ahead of Wednesday's auction, forecasting good demand for the Italian bills.
"In Germany, the front end is hardly attractive," they said.
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