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Post by bot on Nov 10, 2011 19:48:44 GMT -5
Italy sells T-bills as borrowing costs rise from MarketWatch.com - MarketPulse FRANKFURT (MarketWatch) -- The Italian government sold 5 billion euros ($6.8 billion) in 12-month Treasury bills Thursday as borrowing costs surged. The auction produced an average yield of 6.09%, the Treasury said, up sharply from 3.57% in a sale of 12-month bills in October. Bids exceeded supply twice over, up from a bid-to-cover ratio of 1.9 in October. The sale comes after Italian government bond yields spiked higher Wednesday, sending the 10-year Italian government bond yield well above the 7% threshold that many economists view as unsustainable. Yields rise as bond prices fall. Italian bond yields retreated Thursday but remained elevated. The 10-year bond yield fell 11 basis points to 7.02%, according to FactSet Research.
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