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6/26/12 at 8:47am
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Italian Two-Year Debt Yields Highest Since December Auction

http://www.cnbc.com/id/47958420

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Quote:
Italy paid 4.712 percent to sell two-year paper on Tuesday, the highest level since December, as investor doubts have grown about whether a European summit later this week will deliver a decisive answer to the bloc's debt crisis.
 
Pressured by rising interest payments on its 1.95 trillion euro ($2.4 trillion) debt and a deepening economic recession, speculation has grown that Italy is at risk for being forced to seek external assistance to continue finance its sovereign debt .
 

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.

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