Italian yields drop in bond auctions

MILAN — Italy has won some respite as it managed to tap investors for (euro) 5.48 billion ($6.75 billion) with key borrowing rates lower than they had been previously.

The Italian Treasury said the interest rates on its 5-year and 10-year bonds dropped in the auctions Monday.

The yield on the 10-year bonds fell to 5.96 percent from 6.19 percent, while the rate on the five-year issue declined to 5.29 percent from 5.84 percent.

The amount raised was slightly less than the (euro) 5.5 billion sought. Demand was also a bit soft, with the offering only 1.3 times oversubscribed.

Markets have grown increasingly hopeful over the past few days that European leaders are preparing more aggressive action to deal with the debt crisis that’s ravaged the 17-country eurozone for over two years.