MILAN: Italy sold three and seven-year bonds on Thursday at slightly higher yields compared to a month ago as investors worried about slowing economic growth cut exposure to the debt of weaker issuers.
Italy raised the top planned amount of 5.5 billion euros ($6.2 billion) over three bonds at the auction.
The sale came as Italian shares tumbled led by banks and the yield premium of Italian 10-year bonds over safer German Bunds rose to 1.5 percentage points, from 1.4 points at the previous close.
The Treasury sold an Oct. 2018 three-year bond at an 0.11 percent yield, up from a record-low 0.02 percent yield paid on the same bond in mid-January.
The 2 billion euro sale was covered 1.6 times against 1.9 times then.
A seven-year bond due in Sept. 2022 fetched a 1.05 percent yield up from 0.99 percent at the previous auction.
The bid-to-cover rose marginally to nearly 1.5 from 1.4 a month ago.
The Treasury also sold an off-the-run 15-year bond due in March 2030 for 1 billion euros, drawing bids for 1.6 times that amount.
The bond was sold at a 2.08 percent yield.
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