Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Rome's borrowing costs drop to 5.5% on key debt sale

Rome's borrowing costs drop to 5.5% on key debt sale

Rome's borrowing costs have fallen to 5.50% following a key sale of 10-year notes.

The fall, from 6.08%, is the biggest since August a and comes as investors weigh the prospect of another cheap European Central Bank (ECB) liquidity drive.

Italy sold €6.25 billion worth of debt at this morning's sale. The authorities said demand for the notes was on a par with a similar debt auction held by Italy in January.

The outcome of this morning's sale largely fits with expectations, with cover not being overwhelming but enough to beat last month's auction.

More importantly, Italy was able to achieve its full target for the sale and this has been taken as a positive given that increased yields were not set as a concession beforehand.

Marc Ostwald, of Monument Securities, pointed out that the cover of today's sale is a telling sign about Wednesday's Long-Term Refinancing Operation (LTRO) by the ECB.

'Given that the cover was not really out of line with previous sales, it would be tenuous to argue that tomorrow's 3-yr LTRO gave a boost to the sale,' Ostwald said.

Investors' hopes for Europe may instead have been lifted by Monday's agreement on Greece and the decision to give it another financial handout, released in tranches.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Play Colin McLean's mid-cap picks

Colin McLean's mid-cap picks

The SVM director and fund manager on his pick of the UK mid-caps.

Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Your Business: Cover Star Club

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

When Tim Wishart agreed to launch an Edinburgh office for Psigma he was not expecting to  head the company’s first overseas team

Wealth Manager on Twitter