MILAN: Italy sold the top planned amount at a bond auction on Tuesday, paying higher yields due to growing concerns over political infighting in the run-up to European elections in late May.
The Rome-based Treasury auctioned three-, seven- and 30-year nominal BTP bonds, with orders totalling 1.46 times the 6.75 billion euros ($7.6 billion) sold.
The top targeted amount was not particularly heavy but investor demand could not draw support from reinvestment flows due to a lack of redemptions.
Italy placed 2.75 billion euros of a three-year bond maturing in July 2022, at a 1.24pc gross yield, the highest level since December, up from 1.08pc in mid-April.
It also sold a seven-year bond maturing in July 2026, paying 2.23pc, compared to the 2.05pc yield paid at last month's auction of the same maturity.
A 30-year bond due in September 2049 fetched a gross 3.65pc yield, down from 3.91pc in February, when Italy first issued the bond for 8 billion euros via a banking syndicate.
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