Italian Bond Market Is Not Impressed28 October, 2011, 17:56. Posted by Zarathustra
Tags: Bond auction, Economy, Europe, Italy
Italian auction result is not the best thing you would like to hear. It sold €7.835 billion, less than the maximum target. The 2014 bonds are sold at a yield of 4.93% vs 4.68% in the 29 September auction (bid/cover: 1.35 vs 1.36 in the previous auction). The 2019 bonds are sold at a yield of 5.81% vs. 4.03% (bid/cover: 1.62 vs. 1.35 in the previous auction). Finally, the 2022 bonds are sold at a yield of 6.06% vs. 5.860% in previous auction (bid/cover: 1.27 vs. 1.37 in the previous auction).
And now the Italy 10-year yield is back above 5.9%. So much for the EU summit euphoria as far as Italian bond market is concerned.