Forex News – Euro falls after Italian bond auction

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The Italian bond auction results were satisfactory as the target of the upper end of the spectrum was reached with the sale of 4.75 billion euros ($6.1 billion) of government bonds.

November 2014 bonds produced a yield of 4.83 percent, down from 5.62% in a previous auction in December 2011.

Bids exceeded supply 1.22 times, down from 1.36 at the previous sale. Italy also sold 779 million euros of a July 2014 bond at a yield of 4.29% and 971 million euros of an August 2018 bond at a yield of 5.75%, reports said.

Italian 10-year bond yields were last 7 basis points lower at 6.586 percent, off session lows of 6.48 percent hit before the auction.  German Bund futures  hit a record high of 139.86 after the auction results.  U.S. Treasuries  rose as well.

However, the euro  fell sharply to a session low of $1.2774 by 10:45 GMT from around $1.2841.

The bids were softer than expected and the auction wasn’t as impressive as the Spanish bond auction yesterday, which met double its target sale.