European markets rise on news of Greece-Troika deal

Italian treasury bonds sell at lowest rates since 2011

European markets rise on news of Greece-Troika deal

Milan, October 30 - European markets were up on Tuesday on word of a deal reached between the Greek government negotiators and its the Troika of creditors - the European Commission, the European Central Bank and the International Monetary Fund. Greek Premier Antonis Samaras on Tuesday said Greece had obtained the best deal it could with the Troika, but that it was the responsibility of the Greek parliament now to approve the new measures. Meanwhile, the Spanish parliament voted to invite European Central Bank (ECB) President Mario Draghi to voice "his opinion" on a possible, future use of the ECB's anti-spread shield and its possible implications. Milan's FTSE MIB index rose 1.12% to close at 15,521 points. Madrid's Ibex index gained 1.36%. Frankfurt's DAX and London's FTSE-100 indices climbed 1.13% and 0.95%, respectively. Paris's CAC-40 index closed up 1.48%. The Italian treasury sold seven billion euros worth of five and 10-year bonds on Tuesday at the lowest yields seen since 2011. The yield on the 10-year BTP was 4.92%, just under 4.94% recorded on June 28, 2011. Five year bonds fell to their lowest yield since May of 2011. Five year bonds sold on Tuesday with a yield of 3.80% compared to 3.7% on May 13, 2011. Despite the good news for Italy's bond placement, the secondary market for Italian bonds hardly budged. The spread on interest rates between Italian and German bonds in the secondary market remained nearly unmoved at 351 points - a decline of just four points over Monday's close. The yield on Italian 10-year bonds was 4.99%. The spread between Spanish bonds and the German benchmark closed at 419 basis points, with a yield of 5.67% for Spain's 10-year Bonos.

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