Markets force Italy to pay two-year credit at 7.8pc interest rate

By Europa Press | The Italian Treasury on Friday placed €10 billion in two debt auctions, one due at six month and the other at twenty four months. Yet, it has been forced to provide record interests: 6.504% and 7.814%, respectively.

Specifically, Italy’s Treasury sold €8 billion in bonds with six-month maturity for which they had to offer a record yield of 6.504%: 84% more than in the previous auction of this kind that was held last October 26, as the coverage ratio dropped to 1.47x.

On the other hand, the auction of two-year bonds placed €2 billion at an interest rate of 7.814%  versus the 4.628% paid in October, to achieve a coverage ratio 1.59x, far from the 2.01x achieved in the previous issuance.

After the results of the Italian sale were known, the risk premium, which had relaxed to below the threshold of 500 basis points, again increased to 513.2 basis points, with a yield of 7.354%.

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