Italy just wrapped up two bond auctions with some interesting numbers to watch.

First up: their 2.85% 2031 bonds moved €2.75 billion. The bid-to-cover came in at 1.53x - slightly softer than last time's 1.59x, but still showing decent demand. Average yield settled at 2.74%, ticking down a notch from the previous 2.75%.

Then they placed €4 billion in 2035 floating rate notes. These saw a 1.42x bid-to-cover ratio with yields averaging 2.84%.

What's the takeaway here? European sovereign debt auctions matter for anyone trading risk assets. When yields shift and demand changes, it ripples through everything - including how much appetite there is for alternative assets. The slight decline in the B/C ratio suggests investors might be getting a bit more selective, though nothing dramatic. Keep an eye on these eurozone funding costs as they often signal broader market mood shifts before we see major moves elsewhere.

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StablecoinArbitrageur

· 14h ago

okay so the bid-to-cover compression from 1.59x to 1.53x... that's actually the real signal here. most people won't care but this is where it gets interesting for anyone running correlated portfolio hedges across sovereign spreads and crypto collateral markets. italians tightening up demand means risk premiums widening elsewhere, guaranteed. watching this religiously.

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