Italy sells EUR 6.5bln vs exp. EUR 5.5-6.5bln 2.85% 2031 and 3.45% 2036 BTP & EUR 2.5bln vs exp. EUR 2.0-2.5bln 1.468% 2035 CCTeu

• 2.85% 2031: b/c 1.56x (prev. 1.59x) & yield 2.62% (prev. 2.74%)
• 3.45% 2036: b/c 1.47x (prev. 1.50x) & yield 3.31% (prev. 3.44%)
• 1.468% 2035 CCTeu: b/c 1.58x (prev. 1.65x) & yield 2.71% (prev. 2.71%)

Italy's recent bond auction saw stronger-than-expected demand, particularly with the 2.85% 2031 and 3.45% 2036 bonds aligning with expectations on size. However, the slight decreases in bid-to-cover ratios and yields from previous auctions suggest a potential cooling in investor appetite or adjustments to rate expectations. This outcome may influence future outlooks for Italian debt and affect broader European fixed income dynamics.