All Eyes on Italy Auction to Gauge If the Bond Storm Has Passed
This article is for subscribers only.
Is the worst over for Italian bonds? The nation’s debt auction on Wednesday could provide a clue or two.
The debt office plans to issue up to 1.75 billion euros ($2 billion) five-year bonds, 2.25 billion euros of 10-year debt and 2 billion euros of 2025 floating-rate notes. The bidding deadline is 10 a.m. in London, with results due about 30 minutes later. The five- and 10-year offers will be particularly in focus, with the maximum supply seen as equivalent to a combined 24,470 Italian bond futures or 2.5 million euros of risk per basis point move.