Italian borrowing costs hit 29-month low at auction ahead of ECB meeting

MILAN (Reuters) - Italy's borrowing costs fell, touching their lowest level since July 2022, at a Thursday auction as markets were bracing for a 25 basis points rate cut from the European Central Bank (ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB).

The Treasury sold the planned maximum amount of 8.5 billion euros ($8.95 billion) in four bonds.

The Rome-based Treasury sold 3 billion euros of a three-year BTP bond, fetching a 2.35% gross yield, its lowest level since July 2022, compared with 2.73% in mid-November.

It assigned 3 billion euros in a BTP bond maturing November 15, 2031, at a 2.92% gross yield, down from 3.19% mid-October. It was again the lowest level since July 2022.

The Treasury sold 1 billion euros in a 30-year BTP bond touching a 3.94% gross yield, down from 5.05% in mid-November 2023. It was the lowest level since April 2022.

It also assigned 1.5 billion euros in an off-the-run 15-year BTP note, with a 3.19% yield.

($1 = 0.9500 euros)

(Reporting by Sara Rossi, editing by Alvise Armellini)