Italy’s 10-year bond yields hit near three-year low at auction

Usama Fayyaz July 30, 2019

MILAN: Italy paid the cheapest 10-year yields in 34 months at auction on Tuesday and sold the top planned amount in bonds to investors hunting for returns on the backdrop of the European Central Bank’s ultra-expansionary monetary policy.

A 10-year note maturing in August 2029 was sold at a gross 1.56pc yield, sharply down from 2.09pc at last month’s sale and the lowest level since September 2016.

A five-year BTP bond maturing in July 2024 was sold at a gross 0.80pc yield compared with 1.34pc at the previous auction at at the end June and the lowest level since April last year.

The Treasury also sold two floating-rate CCTeu certificates due, respectively, in January 2025 and April 2025. The January 2025 bond fetched a gross yield of 1.06pc – compared with 1.60pc last month – while the April 2025 was sold at 1.11pc.

The Treasury raised the top planned amount of 7.25 billion euros ($8.08 billion) at auction.

Copyright Reuters, 2019

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