MILAN: Italy paid record-low yields to borrow over three years at an auction on Thursday as expectations of further monetary easing by the European Central Bank in December pushed down bond yields in the euro zone.
Italy sold a total of 5.5 billion euros ($5.9 billion) in bonds, at the top of its planned issue range.
The Treasury sold a three-year bond maturing in October 2018 at 0.11 percent, down from 0.25 percent a month ago and a record low.
Bids totalled 1.9 times the 2 billion euros sold.
The bond was issued for the first time in mid-October at an auction that was covered 1.5 times.
A September 2022 seven-year bond was sold at 0.98 percent down from 1.24 percent at last month's auction and the lowest since April.
The bid-to-cover rose to nearly 1.9 times from 1.5.
Italy also sold two 30-year bonds for a total of 1 billion euros. It paid 2.64 percent on an August 2039 bond and 2.71 percent on a September 2040 issue.
Investors requested a total of 2.1 billion euros of the two extra-long maturities.
Comments by ECB President Mario Draghi to European Union lawmakers on Thursday cemented expectations the ECB may act next month as he said signs that a key inflation measure was improving had weakened.
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