(RTTNews) - The European common currency traded lower against major opponents after the results of a bond auction showed Italian 10-year bonds stayed lower in European trading on Thursday. The euro dropped to a new multi-year low against the yen, fresh multi-month lows against the US and Canadian dollars.
At an bond auction, Italy sold just above EUR 7 billion of long term debt today, less than its maximum target for the sale.
The borrowing costs declined further, but the yield on the 10-year debt remained near 7 percent, a level seen unsustainable. The Treasury had planned to sell a total of EUR 8.5 billion long term debt in the final sale for this year.
Italy paid 5.62 percent to sell new three-year debt, while yields on 10-year debt fell to 6.98 percent compared to a euro lifetime high of 7.89 percent paid in November, early reports suggest.
After the result of Italian bond auction, European shares pared some early gains in today's mid-day trading.
The Euro Stoxx 50 index of euro zone blue chippers is rising 0.14 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is up marginally.
Around Europe, the German DAX is rising 0.38 percent, France's CAC 40 is gaining 0.25 percent and the U.K.'s FTSE 100 is up 0.21 percent, but Switzerland's SMI is moving down 0.27 percent.
In economic news, Italian business confidence declined in December on worsening production expectations, data from the statistical office Istat showed today. The manufacturing confidence index fell to 92.5 in December from 94 in November and well below the expected reading of 93.7. Assessments on order books and production expectations worsened, while inventories increased in December.
Extending previous session's downward trading, the euro edged down further against its Japanese counterpart in today's European session and presently trading near a new multi-year low of 100.07 from yesterday's closing value of 100.88.
After a slight gain in late Asian session, the European common currency reversed its direction against the US dollar during European deals today. At present, the euro is worth a new multi-month low of 1.2860 versus the greenback, compared to Wednesday's close of 1.2941.
The euro that hit a high of 1.2204 versus the Swiss franc as of 3:00 am ET traded lower thereafter and as of now trading near a fresh multi-day low of 1.2169.
Against its Canadian counterpart, the European single currency also declined further during European deals and presently worth a new multi-month low of 1.3178.
