Italy's borrowing costs increase

Source: Bloomberg
Italy matched its target ant sold EUR 4.5b of debt. The Italy's treasury sold EUR 3b of 3 year bond with 5.3% yield which increased by 1.4% from the last auction in mid May. EUR 675m was sold as 7 year 4.25% bonds at 6.1% yield and EUR 873m were collected selling 2020 maturing bonds at 6.13% yield. 10y bond yield increased 7 basis points and reached 6.29%. German-Italian 10 year bond yield spread is now at 478 basis points. Investors bid 1.59 times more than amount of 3 year old bonds.

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