Italy sells 6.75bn euros in three bonds, pays record low 5-years yield

30 Jun, 2016

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.

Copyright Reuters, 2016

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