Italy's 2-yr borrowing costs rise to highest since Dec. 2012

MILAN, March 25 Mon Mar 25, 2013 6:26am EDT

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MILAN, March 25 (Reuters) - Italy had to pay a slightly higher yield at a 2-year-debt sale on Monday as investors asked for compensation in response to a domestic political outlook that still remains unclear one month after a parliamentary election.

A last-ditch agreement signed by Cyprus to save its euro zone membership, however, helped Italy sell 3.825 billion euros debt, just below its top planned 4 billion euros.

The treasury sold 2.825 billion euros of two-year zero-coupon bonds, with a yield of 1.75 percent, the highest level since December 2012.

Italy had paid a rate of 1.68 percent on the same bond at an auction on February 25 which took place just few hours before the result of an inconclusive domestic election. Bid-to-cover had been 1.65 at the end-of-February sale.

On Monday Italy offered also two inflation-linked BTPei bonds maturing September 2018 and September 2023 respectively.

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Comments (2)
quatra wrote:
It was Portugal that started the drag-down of the euro. I give the euro 1 year. And then the dollar. China will be the winner. No hedge fundsn noi lending 10 times the capital you have. And no more Rothchilds. Their money will be declared worthless by the Chinese (and the Arabs), the real owners of US and European debt.

Mar 26, 2013 9:25pm EDT  --  Report as abuse
quatra wrote:
Sir, as an Italain citizen I need 10,000 euros. Where do I go to get those at 1.75%?

Mar 26, 2013 10:29pm EDT  --  Report as abuse
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