Italy’s borrowing costs dropped at an auction of five-year and ten-year debt on speculation the European Central Bank may move toward a new round of bond purchases to ease borrowing costs in the country and in Spain.
Italy sold 4.73 billion euros ($5.8 billion) of five- and 10-year bonds. The Rome-based Treasury priced the 10-year debt to yield 5.96 percent, down from 6.19 percent on June 28. The Treasury priced its five-year bond to yield 5.29 percent, compared with 5.84 percent last month.
Italy also sold 750 million euros of a 3% 2015 bond to yield 4.49, bringing the total amount sold at 5.48 billion- euros, near the 5.5 billion euros that was the maximum target for the auction.
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