Wealth Manager - the site for professional investment managers

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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: How David Esfandi is shaping Canaccord Genuity WM

Profile: How David Esfandi is shaping Canaccord Genuity WM

After six months as chief executive of Canaccord Genuity David Esfandi's ambitions are taking shape

Wealth Manager on Twitter