Italian Sovereign

Greece heads to the polls over the weekend for its second parliamentary election this year, but there is little concern of the plebiscite rocking markets like the earlier vote in January.

Spain’s borrowing costs dropped in five years but rose in threes and 10s at an auction on Thursday, as Italy shelved its BTP Italia product for the year.

Italy shunted just over €2bn of redemptions due over the next three years into the next decade, as Portugal sliced several basis points from its short term borrowing costs.

Spain kicked off a busy week for the eurozone periphery with a bill sale where the sovereign’s borrowing costs repeated their pattern for much of this year by bumping around 0%.

Italy’s borrowing costs dropped across the curve at an auction on Friday, although its yields at the longer end are still some distance from the euro-era lows hit earlier this year.

Ireland has cut its 15 year borrowing costs at its biggest auction of the tenor this year, as Italy prepares to tempt investors even further out the maturity curve.

Italy’s short term borrowing costs hit a euro-era record low on Wednesday — but, despite a bail-out deal between Greece’s government and creditors looking imminent, the country’s costs failed to move at a bill auction on the same day.

Italy’s 10 year borrowing costs fell at auction for the first time since March on Thursday, although the sovereign fell slightly short of its maximum target for the sale.

Italy is almost certain to cut its 10 year borrowing costs for the first time since March in an auction on Thursday — and readied itself for that by selling debt at a smidge above 0% on Wednesday.

Italy kick-started a series of auctions this week by selling near the upper end of its target of inflation linked paper on Tuesday.

Italy’s medium to long term yields fell at auction for the first time in four months on Monday, as Greece struck a deal with its creditors — but there could be even greater gains ahead for the eurozone periphery.

Italy auctioned 10 year debt on Thursday at its highest yield this year, despite a rally in periphery eurozone debt a day earlier.