Italy gets through two year bond auction with ease

Monday 28 January 2013 12.24
Italy sells €4 billion in 24 month  bonds
Italy sells €4 billion in 24 month bonds

Italy has easily sold €4 billion in 24-month bonds in an auction that saw the country's borrowing rates fall.

This is a further sign that investors are shrugging off uncertainty ahead of elections next month and Italy's latest financial scandal.

The Italian Treasury said today the interest rate on the bonds was 1.434%, down from 1.884% in December's auction.

Demand was healthy, with the auction 1.45 times oversubscribed.

Italy's financial world has been rocked by the trading scandal at Monte dei Paschi di Siena, the world's oldest running bank, which allegedly covered up hundreds of millions in trading losses.

The scandal has become an issue ahead of February elections as critics question the Bank of Italy's oversight and the government's €3.9 billion bailout of the bank.

Keywords: italy, auction