Italy's rates plunge in EUR 6.5bn bond auction
(MILAN) - Italy's borrowing costs plunged on Thursday in an auction of medium- and long-term bonds that raised 6.5 billion euros ($8.4 billion), indicating an easing of tensions on eurozone financial markets.
Italy raised 4.0 billion euros in bonds falling due in 2015 at 2.75 percent from 4.65 percent before, 1.5 billion euros due in 2026 at 5.32 percent from 5.9 percent and 1.0 billion euros due in 2017 at 3.71 percent from 4.60 percent.
Demand for the bonds was three times as high as the amount on offer, the Bank of Italy said.
The lower rates had been expected after Germany's highest court on Wednesday gave the go-ahead for a new European firewall aimed at resolving the debt crisis and the European Central Bank last week announced a masterplan to help struggling eurozone states on the bond markets.
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