Italian rates fall in sale of 12-month bonds

Italian government easily raises 6.5 billion euros in 12-month bonds at lower rates

Associated Press
Italian rates fall in sale of 12-month bonds

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Italian Prime Minister Mario Monti delivers his speech Italy's stock exchange market during a meeting in Milan, Italy, Monday, Nov. 12, 2012. (AP Photo/Antonio Calanni)

MILAN (AP) -- Italy has easily raised €6.5 billion ($8.2 billion) in the sale of 12-month bonds that saw its borrowing rates drop.

The Italian Treasury on Tuesday paid a yield of 1.76 percent on the paper, down from 1.94 percent at the last such auction in October.

Demand for the bonds was 1.76 times the amount on offer.

The borrowing rates of indebted European countries like Italy have fallen since the European Central Bank said in September it was willing to buy the bonds of governments willing to ask for help. That has boosted investor confidence in the continent's public finances.

A strong result in the recent sale of retail bonds has eased pressure on Italy's need to hold debt auctions for the remainder of the year.

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