Italy sells EUR 6.5bln vs exp. EUR 6-6.5bln 2.85% 2031, 3.45% 2036 BTP & EUR 2.0bln vs exp. EUR 1.5-2.0bln 1.468% 2035 CCTeu

Italy's bond auction achieved a total sale of EUR 6.5 billion, surpassing expectations modestly.

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Italy sells EUR 6.5bln vs exp. EUR 6-6.5bln 2.85% 2031, 3.45% 2036 BTP & EUR 2.0bln vs exp. EUR 1.5-2.0bln 1.468% 2035 CCTeu

UK sells GBP 1.25bln 0.125% 2028 Gilt auction via Tender: b/c 3.77x (prev. 3.84x), average yield 3.443% (prev. 3.783%)

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  • 2.85% 2031: b/c 1.59x (prev. 1.53x) & yield 2.74% (prev. 2.74%)
  • 3.45% 2036: b/c 1.50x (prev. 1.57x) & yield 3.44% (prev. 3.44%)
  • 1.468% 2035 CCTeu: b/c 1.65x (prev. 1.42x) & yield 2.71% (prev. 2.84%)
Context
The decent bid-to-cover ratios, particularly for the 2035 CCTeu bond, indicate strong demand, although stability in yields suggests investor caution regarding future rate movements. This outcome is likely to lend support to Italian debt but could also reflect broader market sentiment about European monetary policy dynamics.

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