MILAN, March 26 Italy's six-month debt costs
eased at a sale on Tuesday, falling to the lowest level since
January as large redemptions offset the impact of market worries
about the consequences of the bailout of Cyprus on peripheral
euro zone debt.
The treasury sold 8.5 billion euros of bills maturing on
Sept. 30, 2013 at a rate of 0.83 percent, down from 1.24 percent
at a sale on Feb. 26, one day after Italy's inconclusive
After Tuesday's auction the treasury has sold around 16.25
billion euros of bills in March compared with 19 billion euros
of short-dated debt coming due this month.
The market's faith that the European Central Bank will buy
the government bonds of states that ask for help also supported
demand for Italian debt.