MW: Italy sells 14.5 bln euros of debt, yields rise
By William L. Watts
FRANKFURT (MarketWatch) -- The Italian Treasury on Tuesday sold a total of 14.5 billion euros ($19.6 billion) of government debt, with borrowing costs rising versus previous sales. The government sold 3.5 billion euros of 24-month, zero-coupon bonds, or CTZ, producing a yield of 4.51% versus a yield of 3.41% in an Aug. 26 auction. The sale attracted bids totaling 5.5 billion euros, exceeding the amount on offer 1.57 times, down from a bid-to-cover ratio of 1.94 in August. The Treasury sold 8 billion euros of six-month T-bills, producing an average yield of 3.07% versus 2.14% in the previous auction. The sale saw a bid-to-cover ratio of 1.74, up from 1.66 in August. The Treasury also sold 3 billion euros of flexible T-bills, which carry a residual maturity, at an average yield of 1.81%, with a bid-to-cover ratio of 2.69.
