European markets slide lower, Italian spread stable

Italy sells 11 billion euros worth of 3- and 12-month bonds

European markets slide lower, Italian spread stable

(ANSA) - Milan, October 10 - European stock exchanges lost terrain again on Wednesday but the spread between Italian 10-year bonds and the benchmark German bund remained steady. Milan's FTSE MIB index lost 0.41% to close at 15,440 points despite modestly encouraging news on the industrial sector. Industrial production levels in recession-hit Italy were up in August for the first time in two months, Istat said on Wednesday. The national statistics agency said industrial output was 1.7% higher in August than in July, although it was still 5.2% lower than in August of 2011 and automotive production plummeted 43.3%. Frankfurt's DAX index also fell 0.41%, while Madrid's Ibex 35 index sank a significant 1%. Paris's CAC 40 index fell 0.50% and London's FTSE-100 slid 0.58%. The Italian Treasury sold 11 billion euros worth of three-month and one-year bonds on Wednesday, but it had to offer higher interest rates to attract buyers than at a similar sale last month. The average interest rate on the three-month BOT climbed 0.765% from 0.7% last time, while the average rate for 12-month BOTs went up to 1.941% from 1.692%. The spread between interest rates on Italian and German 10-year bonds remained stable, closing at 362 basis points. The yield on Italian 10-year bonds was 5.11%. Spanish 10-year bonds and the German benchmark had a difference of 431 basis points. The yield on the Spanish bond was 5.80%.

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