MILAN: Italy sold the top planned amount at a bond auction on Thursday paying record-low yields on a five-year note thanks to hopes for more European Central Bank stimulus following Britain's vote to leave the European Union.
Rome sold 2.5 billion euros of a 10-year bond due in June 2026 at 1.35 percent, down from 1.42 percent at a previous auction a month ago. Demand totalled 1.5 times the amount sold compared with 1.4 times at the end-May sale.
A five-year June 2021 bond fetched a 0.33 percent yield, a new all-time low for the note. The bid-to-cover ratio was 1.4 compared with 1.5 at the previous sale.
The treasury also sold 1.75 billion euros of a floating-rate bond maturing in July 2023 at 0.57 percent, up from 0.53 percent at the previous sale at the end of May. The sale was covered 1.6 times.
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