A highly scrutinized Italian bond auction this morning garnered moderate demand at yields far under the those of more than 7.5% seen last week.
€3 billion ($4.1 billion) in Italian 5-year bonds saw a demand of 1.47 times the amount offered, up from 1.34 at the last auction, according to WSJ. Those bonds sold at yields of 6.43%.
These numbers demonstrate that Italy is still paying a premium on their borrowing, but suggest that fears last week that these costs could skyrocket were exaggerated—or at least premature.
Yields on 5-year bonds are up 0.22% this morning in trading on the secondary market, though they appear to have fallen off a bit since the results of the auction were published:
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