Giovedì, 20 Settembre 2018

Interest falls to 2-yr low at Italian six-month bond auction


Rome, November 28 - Interest rates on six-month
Italian bonds dropped to their lowest level for more than two
years at a successful auction on Wednesday.
The Treasury sold 7.5 billion euros worth of BOT bonds, the
maximum amount it had set for the auction, at an average rate of
0.919%, the lowest rate since April 2010. This was down from the
average of 1.347% at the last auction on October 29.
The auction helped take the yield on 10-year Italian BTP
bonds down to 4.65%, its lowest level in over a year.
In turn this caused the yield spread between the BTP and
the benchmark German bund, a key indicator of Italy's borrowing
costs and of market confidence in the country's ability to
weather the eurozone crisis, down to 326 after it had climbed to
331 earlier in the day.
Austerity measures and structural economic reforms carried
out by Premier Mario Monti's emergency government have helped
restore investor faith in Italy after the country's borrowing
costs looked in danger of becoming unsustainably high last year,
when the crisis forced Silvio Berlusconi to quit as premier.
Italy's borrowing costs have come down significantly since
July when European Central Bank President Mario Draghi pledged
to do whatever was necessary to support the euro.
He followed those words with action in September, when the
ECB established a bond-buying program for stressed countries.
On Thursday, Italy returns to the financial markets,
offering as much as six billion euros worth of five- and 10-year

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