Italy sold 4.9 billion euros of five- and 30-year government bonds on Thursday which analysts said performed well, but only after the market cheapened up before bids closed. The 10-year BTP yield spread over euro zone benchmark Bunds widened by seven basis points to 102 basis points in the run-up to bids closing, cheapening Italian debt and helping the BTPs sell.
The Italian authorities set a range to sell between 3.5 to 5.0 billion euros of bonds in the tender.The sale of 2.0 billion euros of reopened 4.25 percent April 2013 BTPs drew bids for 1.95 times the amount on offer, compared with 1.78 times at the previous sale.
The sale of 1.5 billion euros of reopened 4.0 percent August 2037 BTPs drew bids for 1.358 times the amount on offer, compared with 1.51 times at the previous sale. The sale of 1.417 billion euros of reopened 5.0 percent August 2039 BTPs drew bids for 1.54 times the amount on offer, compared with 1.45 times at the previous sale on September 11.