Italy's 10-yr bond yield at 2-1/2 year low at auction

Italy's 10-year BTP bond yield fell at an auction on Thursday, hitting its lowest level since May 2022 as traders focus on the increasing likelihood of a rate cut by the European Central Bank as early as in December.

The Rome-based Treasury sold the maximum planned amount offered of 8.25 billion euros ($8.69 billion) over four separate bonds at auction .

It allotted 2 billion euros of a 10-yr BTP bond due on Feb. 1, 2035 at a gross yield of 3.39% - its lowest level since May 2022 and down from 3.57% last month.

The Treasury also placed 3.25 billion euros of a 5-yr BTP bond maturing on Oct. 1, 2029 at a gross yield of 2.79% compared with 2.96% at a previous auction, in late October. This was the lowest level since September.

Rome also sold 1.5 billion euros of a 15-yr BTP bond due on Sept. 1, 2033 at a 3.16% gross yield and 1.5 billion euros in a floating rate CCTeu note maturing on April 15, 2032 at a 4.08% yield.

($1 = 0.9489 euros)