Italy's Three-Year Borrowing Costs Fall To Lowest Level In Two Years

Category: Markets / Finance / Jan 11, 2013 10:16AM EDT
Italian three-year borrowing costs fell to the lowest in nearly two years on Friday (January 11) dipping under 2 percent at an auction amid strong demand for the debt of weaker euro zone members from investors hunting for higher yields. Investors snapped up 3.5 billion euros of a three-year BTP bond maturing on December 2015, securing a return of 1.85 percent. The treasury paid 2.5 percent on the same bond at a similar sale one month ago. The successful auction shows investors appear to have little concern for Italy's electoral campaign ahead of a crucial general election in late February.