General

Italian borrowing costs drop after bond offering

Investors show healthy appetite for Italian debt

Italy saw its short-term borrowing costs drop by about 50 per cent on Wednesday, after investors showed a healthy appetite for its $14 billion bond offering. Strong demand for Italian debt was largely seen as a sign of positive market sentiment about the European Central Bank’s emergency three-year loan program for European banks. Just before Christmas, the Bank stepped in to provide an $647 billion in three-year loans to over 500 banks across the continent, an unprecedented move aimed at easing liquidity strains for the region’s financial institutions.

The Financial Times

The Associated Press

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