Wednesday 27 February 2013 5:19 am

Italy auction strong despite electoral woes

A good auction saw all €6.5bn of bonds sell. The costs of Italian political uncertainty have been translated into higher borrowing costs, as the 10-yr 4.5 per cent bond sells at 4.83 per cent, when the same bond sold for 4.17% on Jan 30.

Given the circumstances, a good auction and it looks like Italian risk is considered to have fallen.