Italy’s five- and 10-year borrowing costs fell to their lowest level since October 2010 at an auction on Monday as new Prime Minister Enrico Letta named a coalition government, ending two months of political stalemate.
The treasury sold all of its planned 3 billion euros ($3.9 billion) of 10-year bonds at 3.94 percent, well below the yield of 4.66 percent it paid at a similar sale one month ago.
Rome also issued all the 3 billion euros of five-year bonds it wanted to place, paying a return of 2.84 percent, down from 3.65 percent paid at an auction at the end of March.
Letta is expected to win the backing of his own centre-left Democratic Party and former prime minister Silvio Berlusconi’s centre-right People of Freedom party in a confidence vote due to take place at 3 p.m local time.
via Reuters
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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