Forexpros – Italy saw bond yields fall below 6% at an auction of 10-year government bonds on Monday, indicating that investors now see Italian government debt as a safer investment.
Italy’s Treasury sold EUR5.47 billion of government bonds, having set a target for between EUR3 billion and EUR5.5 billion.
Italy sold EUR2.49 billion of 10-year bonds at an average yield of 5.96%, down from 6.19% last month and the lowest level since April.
Italy sold EUR2.23 billion of five-year bonds at an average yield of 5.29%, down from 5.84% in June, the lowest yield on five-year debt since April.
Italy also sold EUR750 million of a November 2015 bond no longer issued on a regular basis.
The euro remained lower against the U.S. dollar following the auction, with EUR/USD down 0.33% to 1.2279.
European stock markets remained broadly higher. Italy FTSE MIB Index surged 2.24%, the EURO STOXX 50 was up 0.95%, France’s CAC 40 gained 0.76%, Germany’s DAX advanced 0.73%, while London’s FTSE 100 was up 0.49%.
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