concern of the Italian government bond auction demand for the poor performance of the transaction, and the Ministry of Finance to raise the rate of return to attract investors, which not only enhances the difficulties faced by the Italian government, also led the market for fixed on Thursday the Spanish government bonds auction trading fears.
Italian government auction a total of 6.49 billion euros (about $ 8.86 billion) of the four term debt, less than 70 billion euros ($ 9.6 billion) ceiling; the auction transaction The total demand of 90.4 billion euros ($ 12.35 billion), which means the tender rate is only 1.39 times. In the auction transaction, scheduled to expire in 20169 copies of the latest five Italian government bonds yield 5.6%, while in the previous day at 714 for the last five transactions in the bond auction, scheduled for 20 164 copies to period of five government bonds yield 4.93%.
market is very concerned about the Italian government bond auction this transaction, because although the ECB has been steadily buying Italian government bonds, but more recently the cost of financing the country still has again increased substantially, 10-year Treasury The yield has stabilized at more than 5%. Widely believe that the ECB is the only Italian Treasury buyers. At the same time, the situation faced by Spain and Italy are also very similar to the auction on Thursday for up to 40 million euros ($ 5.47 billion) in debt. However, the Spanish Treasury bond yield to slightly lower than in Italy.
in the market for the Italian government’s ability to implement its austerity plan worried about the situation, the country’s weak bond auction trading performance emphasized that the Italian government in control of public debt issues facing great challenge. Currently, the Italian public debt in percentage of total GDP is about 120% in the euro area Member States ranked second only to Greece. In addition, Moody’s Investors Service’s sovereign credit rating on Italian three-observation period is about to expire on Saturday, when the country’s rating may be faced with the risk of being cut.
industry have pointed out, the Italian government bond auction in the trading deliberately avoided the ultra-long-term bonds, which had the country in the middle of each auction transactions usually provide this bond, this is obviously that the Italian government is to provide the European Central Bank in bond purchase plan coverage in the national debt. London traders said the European Central Bank auction of government bonds in Italy before buying the bonds, and reported that after the close of auction the bank has also been involved in the market.
Tags: Italian bond auction demand for poor performance, Italy
industry have pointed out, the Italian government bond auction in the trading deliberately avoided the ultra-long-term bonds, which had the country in the middle of each auction transactions usually provide this bond, this is obviously that the Italian government is to provide the European Central Bank in bond purchase plan coverage in the national debt. London traders said the European Central Bank auction of government bonds in Italy before buying the bonds, and reported that after the close of auction the bank has also been involved in the market.