Wednesday, December 28, 2011

Italian 10-year bonds rose dec 28 2011

Italian 10-year bonds rose dec 28 2011 : Italian 10-year bonds rose for the first time in five days as the nation’s borrowing costs plunged at an auction of 9 billion euros ($11.8 billion) of debt. European stocks and U.S. equity index (MXAP) futures advanced.

Ten-year Italian bond yields fell 13 basis points to 6.86 percent after losing as much as 25 points. Similar-maturity Spanish yields dropped 25 basis points to 5.09 percent. The yen climbed against 11 of its 16 most-active peers and advanced 0.4 percent versus the euro at 8:44 a.m. in New York. The euro fluctuated versus the dollar. The Stoxx Europe 600 Index (MXEF) rose 0.5 percent and Standard & Poor’s 500 Index futures added 0.2 percent. Gold for immediate delivery fell for a second day.

Italy sold the 179-day bills at a rate of 3.251 percent, down from 6.504 percent at the last auction on Nov. 25. Demand was 1.7 times the amount offered, compared with 1.47 times last month. Economic reports showed Japan’s industrial output dropped and confidence among South Korean manufacturers sank to a 30- month low. The U.K. faces the “toughest” employment market in two decades, the Chartered Institute of Personnel and Development said.

“Italy was able to halve the rates from the previous auction,” said David Schnautz, a fixed-income strategist at Commerzbank AG in London. “The next stop is tomorrow’s bond auction and today’s result is a good omen for that. It should be comforting for the market.”

Italy will seek to sell bonds maturing in 2014, 2018, 2021 and 2022 tomorrow. The nation’s 10-year bond yields climbed to 7 percent yesterday, the level that spurred Greece, Ireland and Portugal to seek bailouts. A report tomorrow may show Italian business confidence dipped to the lowest in almost two years. For the latest updates on the stock market, visit Stock Market Today
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