Italian Two-Year Debt Yields Highest Since December Auction
It sold a total of 3.9 billion euros in zero-coupon and inflation-linked bonds — near the top of its planned range — ahead of a six-month bill sale on Wednesday and a more challenging offer of five-year and 10-year debt for up to 5.5 billion euros on Thursday.
The yield on zero-coupon bonds due in May 2014 rose sharply from the 4.04 percent level Rome paid only a month ago on the same paper.
The sale was covered 1.65 times, roughly in line with May's slightly bigger auction.
The Treasury also 916 million euros of two inflation-linked bonds due in September 2016 and September 2026, with bids totalling 2.3 times that amount.
It paid 5.20 percent on the 2016 linker, up from 4.39 percent a month ago.
It sold the second tranche of a 2026 linker first issued in June 2011 through a syndicate of banks at an average 5.29 percent rate.