Italy Sells Maximum EU11 Billion of Bills
Posted: January 27th, 2012 | Author: StockPK Team | Filed under: News | Tags: Auction, Bond, Euro, European Union, investors, Italy, Treasury Bills | No Comments »
11 billion euros ($14.5 billion) of Treasury bills today, meeting its target, and borrowing costs plunged from the previous sale.
The Rome-based Treasury sold 8 billion euros of 182-day bills at 1.969 percent, the lowest since May and down from 3.251 percent at the last auction of similar-maturity securities on Dec. 28.
Investors bid for 1.35 times the amount offered, down from 1.69 times last month. The Treasury also sold 3 billion euros of 331-day bills at a rate of 2.214 percent.
“Bond auctions in Italy are no longer nerve-wracking affairs,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, said by e-mail.
Opposition to payouts on Greek credit-default swaps from European Union policy makers is softening as disputes over a voluntary debt exchange threaten to push the nation into default.
The European Union had its long- and short-term issuer credit ratings of AAA/A-1+ affirmed by Standard & Poor’s Ratings Services, a week after the company cut the AAA ratings of France and Austria.
The World Bank cut its global growth forecast by the most in three years, saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets such as India and Mexico.
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