Italy raised €8 billion in medium and long-term debt today at lower rates than in previous bond auctions in a sign of improving market confidence.
The Treasury raised €3.25 billion with an issue of 10-year bonds at a rate of 5.24% compared to the 5.5% paid in February.
It raised €2.5 billion in bonds due in five years at 4.18% compared to 4.19%.
It had been planning to raise between €6 and €8.25 billion and the bids totalled €13.5 billion.
Weighed down by a debt mountain equivalent to 120% of gross domestic product (GDP) and after the economy entered recession in the second half of last year, Italy has to borrow around €450 billion this year.
Its bond rates have been on a downward trend since Prime Minister Mario Monti took power in November with a programme of budget cuts and structural reforms aimed at keeping Italy's public finances in check and boost growth.
