Italy's funding cost falls at auction
The top targeted amount was slightly lower than at the most recent auctions but there were no redemptions to suppor
- The top targeted amount was slightly lower than at the most recent auctions but there were no redemptions to support the sale, analysts said.
- A floating rate bond due in December 2023 was sold for one billion euros and fetched a gross 0.53% yield.
MILAN: Italy sold the top planned amount at a bond auction on Friday, paying lower yields, benefitting from market optimism over a European Union proposal for recovery fund to offset the effects of the coronavirus pandemic.
The Treasury auctioned five and 10-year nominal BTP bonds paying respectively a three and a two-month low. Total orders were over 10 billion euros against the 7.5 billion euros ($8.25 billion) sold.
The top targeted amount was slightly lower than at the most recent auctions but there were no redemptions to support the sale, analysts said.
Italy placed 4 billion euros of a 10-year bond maturing in August 2030 at a 1.42% gross yield, lowest level since February, down from 1.78% in end April.
It also sold 2.5 billion euros of a five-year bond maturing in July 2025 paying 0.91%, compared to the 1.36% yield at last month's auction. The note was first issued for 10 billion via a syndicated deal on April 21, when gross yield came in at 1.928%.
A floating rate bond due in December 2023 was sold for one billion euros and fetched a gross 0.53% yield.
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