Italian, Spanish Two-Year Notes Stay Higher as LTRO Loans Exceed Estimates

Italian two-year notes stayed higher as euro-area banks tapped the European Central Bank for more three-year cash than economists forecast.

The gains left the yield 21 basis points, or 0.21 percentage point, lower at 2.23 percent at 10:29 a.m. London time. The Spanish two-year note yield fell eight basis points to 2.36 percent.

The ECB said today it will lend 800 financial institutions 529.5 billion euros ($712.2 billion) for 1,092 days. Economists predicted an allotment of 470 billion euros, according to the median of 28 estimates in a Bloomberg News survey. Banks borrowed 489 billion euros in the first operation in December.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Tim Farrand at tfarrand@bloomberg.net

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