BLBG:Italy Sells 8 Billion Euros Of Bills As Borrowing Costs Rise
Italy sold 8 billion euros ($9.9 billion) of Treasury bills as borrowing costs rose amid speculation the European Central Bank’s plan to purchase the securities of indebted nations won’t be sufficient to curb the regional debt crisis.
The Rome-based Treasury sold the 364-day bills at 2.767 percent, up from 2.697 percent at the last sale of similar- maturity debt on July 12. Investors bid for 1.69 times the amount of bills offered, up from 1.55 times last month.
The yield on Italy’s 10-year bond dropped 2 basis points to 5.88 percent at 11:10 a.m. in Rome, leaving the difference with German bunds at 448 basis points.
ECB President Mario Draghi opened the door earlier this month to buying Spanish and Italian securities, along with the euro area’s bailout funds. While the plan offered Europe an initial respite from the turmoil, Spanish and Italian yields rose last week on concern that a debt-purchasing program won’t be sufficient to tame the crisis.
To contact the reporter on this story: Chiara Vasarri in Rome at cvasarri@bloomberg.net
To contact the editor responsible for this story: Dan Liefgreen at dliefgreen@bloomberg.net
