MILAN Jan 11 Italian three-year borrowing costs
dipped under 2 percent at an auction on Friday, falling to the
lowest level in nearly two years amid strong demand for the debt
of weaker euro zone members from investors hunting for higher
Investors snapped up 3.5 billion euros of a three-year BTP
bond maturing on December 2015, securing a return of 1.85
The treasury paid 2.5 percent on the same bond at a similar
sale one month ago.
While the yield fell to the lowest level since March 2010,
it looked attractive to buyers compared with a return just above
zero on the equivalent German Bund.
At the same time investors showed little concern for Italy's
electoral campaign ahead of a crucial general election in late
Rome also sold 1.5 billion euros of two five-year floating
rate CCTeu notes, issuing the top targeted amount of 5 billion