Italian Bond Market Is Not Impressed

There are obviously more people than just Jim Chanos, Wolfgang Munchau and me who are actually quite unimpressed about the latest deal from EU.

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.

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.