Sovereign, supranational and agency benchmark issuance may well have begun and ended this week with the EFSF’s three year benchmark on Tuesday, given the market turmoil after the inconclusive Italian election. But despite the uncertainty, Italy blazed through an auction of 10 year bonds on Wednesday morning.
It sold 4bn of 4.5% 2023 BTPs at a yield of 4.83% with a bid to cover ratio of 1.65.
The sale impressed bankers but may not be enough to entice other borrowers back into the market. SSA bankers said the mood remained cautious and there was little