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italy-flag MILAN: Italy paid the lowest yield in more than two years and a half to sell 7.5 billion euros of six-month bills at an auction on Wednesday in a market still supported by a deal to release the next aid tranche to Greece in mid-December.

 

Six-month borrowing costs dipped to 0.919 percent on Wednesday, reaching the lowest level since April 2010.

 

The treasury had paid 1.347 percent to place 8 billion euros of a similar bill just one month ago.

 

Since September, when the European Central Bank pledged to buy bonds of vulnerable euro zone countries that asks for help, Rome has managed to guide borrowing costs down towards pre-crisis level.

 

Rome will offer up to 6 billion euros of five- and 10-year bonds on Thursday in the last sale for these issues to be completed in 2012.

 

Copyright Reuters, 2012

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