Bots: Strong demand, declining yields

Demand doubles supply and declining yields for today's 12 billion euro 6,5-month BOT auction. Yields fell to 2,959% from 3,67%, although they came in slightly higher than expected. The demand was 12,6 billion, with a bid to cover ratio of 1,94. Foreign investors are returning to buy, operators report. Thus the spreads between the Btp and the Bund fall to 278,2 basis points and Milan finds the road to parity again. At 11.27 the Ftse Mib index rose by 0,10%. However, the major banks remain heavy with drops between 1,7 and 2,9%: Ubi Banca loses 2,89%, Intesa 2,59 and Unicredit 2,16%.