Italy borrowing costs fall in bond auction

Italy's borrowing costs dropped on Thursday in a bond auction that raised 8.5 billion euros ($11.6 billion), reflecting improved investor confidence.

The Italian Treasury said it had sold 4.0 billion euros in bonds to be redeemed in May 2019 at an average rate of return to investors of 2.43 percent, which Italian financial news agency Radiocor said was a record low level.

It also auctioned off 3.0 billion euros in bonds due in March 2024 at 3.81 percent compared to a rate of 4.11 percent in the last similar auction in December.

A total of 1.46 billion euros in floating-rate CCTeu bonds that mature in November 2018 were also sold at a rate of 1.79 percent compared to 2.11 percent in November.