Italy gets through 2-year bond auction with ease

AP News
Posted: Jan 28, 2013 6:38 AM

ROME (AP) — Italy has easily sold €4 billion ($5.4 billion) in 24-month bonds in an auction that saw the country's borrowing rates fall, in a further sign that investors are shrugging off uncertainty ahead of elections next month and Italy's latest financial scandal.

The Italian Treasury said Monday the interest rate on the bonds was 1.434 percent, down from 1.884 percent in December's auction. Demand was healthy, with the auction 1.45 times oversubscribed.

Italy's financial world has been rocked by the trading scandal at Monte dei Paschi di Siena, the world's oldest running bank, which allegedly covered up hundreds of millions in trading losses.

The scandal has become an issue ahead of Feb. 24-25 elections as critics question the Bank of Italy's oversight and the government's €3.9 billion bailout of the bank.