Italian Bond Auction Results Are Out And They Weren’t Terrible

The Italian government just sold 4.75 billion euros worth of debt maturing in 2014 at a yield of 4.83% (via DJ), down from 5.62% at the December auction.  However, demand was lower with a bid to cover ratio of 1.2, down from 1.4 in the previous auction.

It also sold debt maturing in 2018 at a yield of 5.75%.

The initial market reaction seems to be slightly unfavorable.  The euro is ticking down and Italian interest rates are ticking up.  Never the less, rates are still lower for the day.  Here’s an intraday chart of the Italian 10-year yield.


[credit provider=”Bloomberg” url=””]