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.