Huge Italian debt sale boosts peripheral bonds

LONDON: Italian and Spanish bond yields fell to multi-month lows on Friday as lower-rated euro zone debt extended its recent rally, aided by the huge demand for Italy's latest retail investor bond issue.

Italian 10-year yields fell to a 7-1/2 month low of 4.72 percent as the market welcomed the huge 18 billion euros of BTP Italia debt issued late on Thursday, the highest amount ever reaped in a single debt offering.

"Italy getting all those inflation-linked bonds away is easing the burden for them going forward," one trader said.