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Italy places 30-year bond in four-year first

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(Globalpost/GlobalPost)

Italy on Wednesday placed a 30-year bond, the first time it has done so since September 2009, which should help the country spread out the repayment period of its massive debt.

The Italian Treasury raised 6 billion euros ($7.7 billion) at a yield of 4.985 percent, according to an economy ministry statement.

Italian media said bids for the bonds had totalled more than 12 billion euros.

The return to issuing such long-term bonds shows that "Italy, thanks to the austerity cure that ensures the consolidation of its public finances and the safety nets of the ECB and ESM, is no longer perceived as a systemic risk," the business daily Il Sole 24 Ore said on its website.

The European Central Bank has pledged to intervene massively in the bond markets if necessary for eurozone governments implementing recovery plans, while the European Stability Mechanism institutionalises the bailout mechanisms for the eurozone.

Italy also recently swore in a new coalition government, two months after elections that produced no clear winner.

The Bank of Italy said Tuesday that the country's debt had risen to a new record of 2.03 trillion euros.

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http://www.globalpost.com/dispatch/news/afp/130515/italy-places-30-year-bond-four-year-first