March 12, 2015 / 11:37 AM / 3 years ago

Italy's bond yields touch new record lows at well-bid auction

MILAN, March 12 (Reuters) - Italy’s three-, seven- and 30-year borrowing costs fell sharply to reach new record lows at auction on Thursday as central banks pushed ahead with bond purchases in the fourth day of the European Central Bank’s quantitative easing programme.

The Treasury raised a total of 7.25 billion euros ($7.7 billion) with three bonds, at the top of a planned range, with demand particularly strong on the three-year maturity.

The yield paid on a three-year bond due in January 2018 tumbled to 0.15 percent, falling by 30 basis points compared with a previous record low posted in February. Demand was 1.88 times the amount sold, up from 1.83 in February’s placement.

Italy sold a seven-year bond due in April 2022 at an average 0.71 percent yield, down from 1.23 percent. The bid-to-cover rose to 1.49 times from 1.44 times at a bigger sale in February.

A 30-year bond due September 2046 fetched an average 1.86 percent yield, down from 3.29 percent at a syndicated sale in January. The sale was covered 1.57 times. ($1 = 0.9428 euros) (Reporting by Francesca Landini, editing by Stephen Jewkes)

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