First the good news.
Italy managed to raise the targeted amount of €10bn at Friday’s short-term debt auction.
Now the bad news:
RTRS-ITALY 6-MTH BOT BILL AUCTION YIELD 6.504, UP FROM 3.535 PCT AT END-OCT. SALE-BANK OF ITALY
RTRS-ITALY 2-YR CTZ BOND AUCTION YIELD 7.814 PCT, UP FROM 4.628 PCT AT END-OCT. SALE-BANK OF ITALY
RTRS-ITALY 6-MTH BOT BILL AUCTION BID-TO-COVER RATIO 1.47 (1.57)
RTRS-ITALY 6-MTH BOT BILL AUCTION YIELD OF 6.504 PCT IS NEW EURO ERA HIGH
RTRS-ITALY 2-YR ZERO-COUPON CTZ BOND AUCTION BID-TO-COVER RATIO 1.59 (2.01)
RTRS-ITALY 2-YR ZERO-COUPON CTZ BOND AUCTION YIELD IS NEW EURO LIFETIME HIGH
So Italy is paying three times more to borrow for six months than Germany did for ten years at this week’s ‘failed auction‘.
Ouch.
And now to the price action.
Italian ten-year:
Italian yield curve
Related links:
Italy catches a cold, eurozone sneezes – FT Alphaville