Italian borrowing costs dropped to a record low at a sale of one-year bills in the country’s first debt auction since the European Central Bank pushed through a package of stimulus measures, boosting demand for higher- yielding euro-area assets.
Italy sold the maximum amount targeted at an auction of 7.25 billion euros ($10 billion) of debt today as policy makers prepare more stimulus measures to prevent stagnant prices from derailing the economic recovery.
Portugal’s two-year notes rose for a third day after the nation said yesterday it will buy back debt as it works toward exiting its bailout program, adding to evidence the euro area is putting the debt crisis behind it.
Spain sold 3.88 billion euros ($5.1 billion) of three- and six-month Treasury bills, near the maximum target, as borrowing costs rose amid lingering concern the nation will struggle to fund its deficit.
Germany’s government bonds were little changed, with 10-year yields about one basis point from the highest level in a week, before the European Central Bank announces its monthly monetary policy decision.
Germany’s 10-year government bonds rose, pushing yields down from the highest level in 17 months, as a U.S. labor-market report added to signs a global selloff in fixed-income securities was excessive.