ROME: Bank of Italy Governor Ignazio Visco said on Tuesday governments can benefit from very low interest rates in issuing sovereign bonds as they hike public spending to support their coronavirus-battered economies.

"There is demand for very long term debt and not enough supply," Visco, a member of the European Central Bank governing council, told CNN when asked about Italy's latest 50-year BTP bond. On Thursday, the Italian Treasury said foreign investors subscribed 88% of the new bond.