- Nicholas Spiro at Spiro Sovereign Strategy
Despite the unexpected Moody's rating cut by two notches to 'Baa2' a day earlier, Italy successfully sold the planned amount of bonds at the auction on Friday.
"Italy's perceived creditworthiness is externally driven," said Nicholas Spiro at Spiro Sovereign Strategy. "We find it extremely worrying that there is still insufficient differentiation between Spain and Italy in the markets."
Ten-year bond yields rose to 6.04%, five-year yields increased to 5.55%, while three-year bond yield was 4.65%, down from 5.30% at the auction last month.
The Italian government raised EUR 5.25 billion at the Friday auction.
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