Italy's Government Bonds Drop After $8.5 Billion of Debt Sales

  • Nation's Treasury auctions debt maturing from 2019 to 2032
  • European bonds hold declines even after oil, stocks erase gain

Italy’s bonds fell after the nation sold 7.47 billion euros ($8.52 billion) of debt on a day when European government securities slipped.

The Treasury auctioned debt with maturities from 2019 to 2032, while Ireland sold 750 million euros of notes due in 2022. Investors bought Italian securities due in 2023 at a yield of 0.87 percent, higher than the 0.82 percent at the previous auction of seven-year debt almost one month ago.

“There’s general weakness in European government bonds,” said David Schnautz, a London-based fixed-income strategist at Commerzbank AG in London. “Italian bonds seem to underperform, which may well be supply-related.”

The yield on Italy’s 10-year bonds rose three basis points, or 0.03 percentage point, to 1.51 percent as of the 5 p.m. London close. The 2 percent security due in December 2025 dropped 0.295, or 2.95 euros per 1,000-euro face amount, to 104.43. The yield of similar-maturity bonds of Spain climbed two basis points, and it was little changed for Ireland’s.

Crude oil futures fell 1.2 percent, after having risen 1.1 percent earlier. The Stoxx Europe 600 Index declined 0.5 percent, also erasing previous gains.

Euro-region government securities returned 1.6 percent in the three months through Wednesday, compared with a 0.3 percent loss their U.K. counterparts, according to Bloomberg World Bond Indexes.

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