Connect with us

Hi, what are you looking for?

World

Italy’s borrowing cost at record low on 12-month bonds

-

Italy raised 7.5 billion euros ($10.4 billion) on Thursday in a sale of 12-month bonds with the rate falling to a record low of 0.589 percent, the Bank of Italy said.

The rate at a similar auction on March 12 was 0.592 percent, the central bank said in a statement.

Demand was 1.36 times higher than the offer and the amount sold was the maximum planned, it added.

Italy's borrowing costs have fallen drastically in recent months amid increased investor confidence, allowing Prime Minister Matteo Renzi's new government to save money on interest payments from the budget.

The low rate for Italian debt coincided with a breakthrough return to medium-term bond markets by Greece on Thursday, in a major sign that the eurozone debt crisis is fading.

Italy raised 7.5 billion euros ($10.4 billion) on Thursday in a sale of 12-month bonds with the rate falling to a record low of 0.589 percent, the Bank of Italy said.

The rate at a similar auction on March 12 was 0.592 percent, the central bank said in a statement.

Demand was 1.36 times higher than the offer and the amount sold was the maximum planned, it added.

Italy’s borrowing costs have fallen drastically in recent months amid increased investor confidence, allowing Prime Minister Matteo Renzi’s new government to save money on interest payments from the budget.

The low rate for Italian debt coincided with a breakthrough return to medium-term bond markets by Greece on Thursday, in a major sign that the eurozone debt crisis is fading.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

World

Calling for urgent action is the international medical humanitarian organization Doctors Without Borders/Médecins Sans Frontières (MSF)

Business

The cathedral is on track to reopen on December 8 - Copyright AFP Ludovic MARINParis’s Notre-Dame Cathedral, ravaged by fire in 2019, is on...

Business

Saudi Aramco President & CEO Amin Nasser speaks during the CERAWeek oil summit in Houston, Texas - Copyright AFP Mark FelixPointing to the still...

Business

Until the Second Coming of Jeffrey Epstein, you’ll just have to put up with economic realism.