Investing.com - Italy saw borrowing costs fall to a record low at an auction of three-year government bonds on Thursday, as investors shrugged off concerns over fresh political instability in the euro zone’s third largest economy.
Italy’s Treasury sold EUR3.5 billion worth of three-year government bonds at an average yield of 1.41%, down from 1.51% at a similar auction last month.
Rome also sold EUR2.5 billion of debt maturing in 2021 at an average yield of 3.02%, down from 3.17% last month, as well as EUR1.5 billion of debt maturing in 2044 at an average yield of 4.59%.
The yield on Italian 10-year bonds stood at 3.756% following the auction.
The euro held on to gains against the U.S. dollar following the auction, with EUR/USD rising 0.57% to trade at 1.3671.
Meanwhile, European stock markets remained lower. Italy FTSE MIB Index lost 1.2%, the EURO STOXX 50 dropped 0.55%, France’s CAC 40 shed 0.35%, Germany’s DAX slumped 0.3%, while London’s FTSE 100 declined 0.7%.