Italian Bond Auction Goes Smoothly Ahead Of The Election

Gelato

Photo: Caitlin via flickr

Italy just sold 3.449 billion euro worth of 3-year bonds at a yield of 2.3 per cent, up from 1.85 per cent at a similar auction in January.  This is according to Bloomberg.The bid-to-cover ratio, a measure of demand, was 1.37, down from 1.45.

Despite the higher borrowing costs and lower demand, this wasn’t a terrible auction, especially considering all of the uncertainty that has surfaced ahead of Italy’s upcoming elections.

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