Yields drop on Italian bonds

City A.M. Reporter
ITALIAN bonds edged higher yesterday as investors attracted by prospects of a more stable government and ultra-easy central bank policy snapped up the five-year debt on offer in an exchange operation.

The Treasury assigned €3.3bn of December 2018 bonds in exchange for five bonds due in 2015 and 2017 in a bid to ease its near-term repayment burden.

The size of the debt exchange was double the average of the previous seven, according to ING, in a sign that such offers can be efficient in lengthening the maturity of Italy’s debt if done on a regular basis.

Ten-year Italian bond yields fell one basis point to 4.09 per cent.