Italy Drives Harder Bargain on Bonds After Investors Back Draghi

  • Investor orders almost halved after spread level tightened
  • Italy’s new Premier Draghi has boosted investor sentiment

Mario Draghi during a handover ceremony at Chigi Palace in Rome,on Feb. 13.

Photographer: Alessia Pierdomenico/Bloomberg
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Italy’s new prime minister Mario Draghi got an early endorsement from investors who flooded a government debt sale with orders, allowing the country to secure a better price than it initially targeted.

After the bond sale went live on Tuesday morning, it was soon on course to rack up record orders of over 110 billion euros ($134 billion) for the 10-year portion, more than 10 times the amount on sale.