Data provided by iNet BFA
Loading...
See More

Italy bond yields fall, but not far from high

Dec 29 2011 13:30 Reuters

Related Articles

US stocks sink after five session rally

US stocks up despite poor Italy bond sale

Data likely to show up euro faultlines

Spanish, French borrowing costs raise alarm

Under pressure rand extends losses

D-day for crucial Italian bond auction

 
Milan - Italian bond yields fell from recent record highs at auction on Thursday but cautious investors still demanded a near 7% yield to buy 10-year paper, a level seen unsustainable over time for the eurozone's third-largest economy.

An injection of longer-term liquidity from the European Central Bank (ECB) and a new Italian budget package this month have eased pressure on shorter-term debt, but longer-dated bonds still pose a challenge for Italy ahead of large redemptions early next year.

Italy raised about €7bn on Thursday in thin holiday markets after a well-bid short-term debt auction on Wednesday. The Treasury had planned to sell between €5bn and €8.5bn of bonds.

On Thursday, Italy paid 5.62% to sell new three-year debt - a much lower yield compared to a euro lifetime high of 7.89% paid only a month ago.

The fall in the three-year yield comes after the bill sale on Wednesday saw six-month funding costs halve from a month earlier. The 10-year yield fell to 6.98% from a euro lifetime record of 7.56% at an end-November sale.
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Disregard of interest rate impact deplored

A Fin24 user protests what he sees as disregard of the broader impact of increased interest rates on those who cannot yet say "bring it on" with a smile.

 
 

Start saving...

No need to keep up with the Joneses
Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...