Italy's Borrowing Costs Drop to One-Year Low at Bond Auction
MILAN (Reuters) -Italy's borrowing costs fell to the lowest level in a year at an auction on Thursday, as investors increasingly bank on a December rate cut by the U.S. Federal Reserve.
The Rome-based Treasury allotted the maximum planned amount of 9.5 billion euros ($11 billion) in three bonds, including a new floating-rate CCTeu.
The Treasury sold 2.75 billion euros in a top-up of a 10-year BTP bond maturing in February 2036 fetching a gross yield of 3.44%, the lowest since November 2024, compared with 3.46% at the end of October.
It allotted 2.75 billion euros of a 5-year BTP bond due in February 2031 with a 2.74% gross yield, a five-month low and the same level as June, from 2.75% in the previous auction.
Rome also placed 4 billion euros of new floating-rate CCTeu note maturing April 15, 2035.
($1 = 0.8637 euros)
(Reporting by Alessia Pe, editing by Alvise Armellini)
