Italy has sold €3.75 billion in 10-year bonds at a yield of 5.5%, down from 6.08% in January.
Marc Ostwald, financial markets strategist at Monument Securities, reflects other analysts' opinions when saying:
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However, Ostwald says "it would be tenuous to argue that tomorrow's three-year LTRO gave a boost to the sale":
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To read more LTRO coverage from Euromoney, don't forget to check out the following:
Distressed corporate debt: The end of extend and pretend
Refinancing options are running out for many European companies with looming debt maturities. Could the banks’ own funding problems finally precipitate the distressed debt opportunity this market has been waiting for? Or are the consequences of asset disposals too brutal for many banks to take?
Euromoney February 2012
LTRO2: No bank safety in Draghi's massive numbers
Bankers predict the next round of ECB financing could top €1 trillion. But it will take more than an LTRO-induced liquidity injection to fix Europe’s banks
Published January 2012 euromoney.com
ECB: Two cheers for the three-year LTRO
Will Europe’s leaders do enough to convince banks to finance its problem sovereigns through an ECB-led carry trade?
Euromoney January 2012
Funding: A Talf for Europe
ECB lets banks delever in orderly fashion; Bank bond issues might be scarce this year
Euromoney January 2012
Global finance: Running on empty
“The LTRO is a lot more positive than we’d originally expected"
Euromoney January 2012
“Monumental” uptake of ECB LTRO but carry-trade impact unlikely
The €489.2 billion take-up of the ECB’s inaugural three-year LTRO on Wednesday underscores the significance of this new facility to the bank funding market in Europe
December 2011 euromoney.com
ECB's new LTRO threatens the covered bond market .
Banks may opt for cheaper long-term LTRO funding rather than secured issuance next year
December 2011 euromoney.com
Funding freeze pushes banks closer to the edge
The ECB announced two new Long-Term Refinancing Operations (LTROs) in October – one for 371 days and one for 406 days. Total borrowing at the October 26 auction was €101.5 billion, with 181 bidders for the 12-month LTRO (far lower than the 1,121 that bid in the June 2009 LTRO). But for how long can the ECB substitute itself for the interbank lending market?
Euromoney November 2011
Banks can't dodge the EU sovereign debt crisis
Euromoney March 2010
ECB offers longer-term finance via six-month LTROsEuromoney May 2008