Bond yields fall to six-month low as Italy sells 10-year debt

Italy saw borrowing costs fall to the lowest level since April at an auction of ten-year government bonds on Wednesday, amid easing concerns over the country’s economic outlook. 

Italy’s Treasury sold EUR3 billion worth of ten-year debt at an average yield of 4.11%, down from 4.50% at a similar auction last month.

Rome also sold EUR3 billion of five-year government bonds at an average yield of 2.89%, also the lowest since April and down from 3.38% at a similar auction last month.

In total the country sold EUR6 billion of government debt, in line with expectations.

The yield on Italian 10-year bonds stood at 4.148% following the auction.

Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.12% to trade at 1.3761.

European stock markets remained higher. Italy FTSE MIB Index rose 0.85%, the EURO STOXX 50 advanced 0.5%, France’s CAC 40 added 0.55%, Germany's DAX tacked on 0.4%, while London’s FTSE 100 inched up 0.45%.