Italy Sells 11.5 Billion in Euro Bills

They are getting nervous about Italian debt, but still buying.

Italy sold 7.5 billion euros of one-year bills at an average yield of 4.153 percent compared with 2.959 percent the last time securities of similar maturity were sold on Aug. 10. Demand was 1.53 times the amount on offer, compared with 1.94 times at the previous sale.

The Treasury also sold 4 billion euros of 3-month bills. The yield was 1.907 percent, up from the 1.034 percent the last time such securities were sold on March 10. The bid-to-cover ratio was 1.86, compared with 2.42 at the previous sale.

Though higher compared to the last auction, rates remain lower than prior to the ECB entering the markets to prop up debt purchases. It is not clear what role, if any, the ECB played in today's auction.