Italy 3-Year Yield Slides at Auction

Lowest yield in almost two years follows German court's OKing ECB bond-buying program.

Italy sold three-year debt at the lowest rate in almost two years, a day after Germany’s top constitutional court paved the way for the European Central Bank and the European Union to buy bonds of nations in distress.

The Rome-based Treasury sold 4 billion euros ($5.2 billion) of its benchmark three-year bond to yield 2.75 percent, down from 4.65 percent at the last auction of the same securities on July 13. That was the lowest Italy paid on three-year debt since October 2010, according to Bloomberg data. Investors bid for 1.49 times the amount offered, down from 1.73 times on July 13.

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