Italian Sovereign

Ireland has cut its 15 year borrowing costs at its biggest auction of the tenor this year, as Italy prepares to tempt investors even further out the maturity curve.

Italy’s short term borrowing costs hit a euro-era record low on Wednesday — but, despite a bail-out deal between Greece’s government and creditors looking imminent, the country’s costs failed to move at a bill auction on the same day.

Italy’s 10 year borrowing costs fell at auction for the first time since March on Thursday, although the sovereign fell slightly short of its maximum target for the sale.

Italy is almost certain to cut its 10 year borrowing costs for the first time since March in an auction on Thursday — and readied itself for that by selling debt at a smidge above 0% on Wednesday.

Italy kick-started a series of auctions this week by selling near the upper end of its target of inflation linked paper on Tuesday.

Italy’s medium to long term yields fell at auction for the first time in four months on Monday, as Greece struck a deal with its creditors — but there could be even greater gains ahead for the eurozone periphery.

Italy auctioned 10 year debt on Thursday at its highest yield this year, despite a rally in periphery eurozone debt a day earlier.

A tantalising glimpse of a final resolution to Greece’s negotiations with its creditors sent periphery eurozone yields plunging on Wednesday, ahead of an Italian auction on Thursday.

Spain’s Electricity Deficit Amortisation Fund (FADE) has mandated banks for a first syndication in over a year — despite periphery eurozone yields suffering a rocky week.

Italy has closed a long dated private placement — its second this month — as Portugal and Spain cue up auctions for the coming days.

The Banca d’Italia announced on Monday that it was prepared to offer its stock of securities bought under the public sector purchase programme (PSPP) into the market for a much lower price than the other central banks using the scheme.

A eurozone wide bond sell-off over the past two weeks took its toll on Italy on Wednesday, as it auctioned bonds at yields last seen several months ago.