Both Italy and the European Investment Bank got great execution on 10-year new issues last month. The US two-to-10-year curve has been inverted since June and is now approximately –7 basis points.
For about 18 months, execution in the dollar market has been poor for quality international issuers. This has meant that Italy and other international borrowers were not as active as usual in dollars. But with 10-year treasury yields at six-month lows (4.72%), sovereigns offering a 50bp spread – as Italy did – are now a very attractive proposition for dollar investors.
The Republic of Italy sold $3 billion, upsized from $2 billion, via Citigroup, Goldman Sachs and JPMorgan.
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