Interest rates halved at Treasury bond sale
But long-term spreads return to 500 mark
Wednesday, 28 December 2011
28 December, 16:57
(ANSA) - Rome, December 28 - Interest rates were halved at Wednesday's Treasury bond auction but the positive impact was short-lived as the spread between the long-term bond against the German benchmark returned to 500 basis points.
Interest rates at the six-month bond auction fell to 3.251% from 6.504% at the end of November.
But after 10-year bonds fell to 482 basis points in early trading, the spread surged to the psychologically significant 500-mark once again to deliver a yield of 6.91%.
The Treasury bond auction took place a day after European Union banks deposited a record 452 billion euros with the European Central Bank on Tuesday, the most since the euro's introduction in 1999.
The ECB last week loaned 523 banks a record 489 billion euros for three years to keep credit flowing through the 17-nation eurozone.
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