MILAN (Reuters) -Italy’s funding costs hit a multi-month low at an auction on Tuesday, driven down by expectations of further rate cuts by the European Central Bank.
The Italian Treasury sold the planned maximum amount of 9.5 billion euros ($10.83 billion) over three bonds, including a new 10-year BTP.
It assigned 4 billion euros of a new 10-year BTP bond maturing October 2035, at a 3.62% gross yield, the lowest since February, down from 3.83% at the previous auction when it sold a note due on August 2035.
It also placed 3.5 billion euros of a five-year BTP bond maturing in July 2030, fetching a 2.74% gross yield, equalling a June 2022 level. That compared with 3.05% at the end of March.
The Treasury sold 2 billion euros of a floating-rate CCTeu bond maturing April 2033 with a 3.27% yield.
($1 = 0.8776 euros)
(Reporting by Sara Rossi, editing by Gavin Jones)
