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Italy sees borrowing costs drop on 12-year bonds, easily raises euro6.5 billion from markets
MILAN (AP) ' The Italian Treasury saw borrowing costs drop sharply in its latest bond sale Wednesday.
Italy easily raised euro6.5 billion ($9.27 billion) through the sale of 12-month bonds. Yields dropped to 2.9 percent from 3.67 percent a month ago.
Demand was nearly double the offer, compared with a 1.5 percent cover rate last month.
Pressure on Italian yields has eased this week as the European Central Bank began buying the country's debt in the secondary markets, bringing the 10-year spread between Italian bonds and the German bund below 280 basis points. It had risen some 100 basis points higher.
Italy previously canceled the mid-August medium- and long-term bond auction due to a favorable cash position and reduced funding needs.