December, 29: Italian Treasury has auctioned long term bonds at lower rate in comparison to last month but could not replicate the success it got in selling short term bonds yesterday.

However, authority has managed to bring down rate below 7 percent for the bonds maturing in 10 years. Yields on 10-year debt fell to 6.98 percent compared to a euro lifetime high of 7.89 percent paid in November this year.

Italy has raised three-year debt bond on an average of 5.62 percent today.

In today’s auction Italian could not repeat the sprit what it had shown yesterday. Concern shown by the expert over the bouncy demand was correct. Market could not maintain the momentum further and demand for longer term bonds fall.

Yesterday, the country has manages to raise 9 billion Euros at an average of 3.25 percent, which exactly half in comparison to 6.5 percent of last month.

Similarly, Italian treasury also raised 1.733 billion through zero coupon bonds at an average of 4.835 percent. Last month it has raised money at the rate of 7.814 percent.