Bloomberg News

Lira Strengthens to One-Week High After Italy Debt Auctions

November 29, 2011

Nov. 29 (Bloomberg) -- The lira advanced to its strongest level in a week on greater appetite for riskier assets after the Italian government sold about 7.5 billion euros ($10 billion) of debt today.

The lira advanced 0.6 percent to 1.8480 per dollar at 12:53 p.m. in Istanbul, the highest level since Nov. 22. Yields on two-year debt fell 3 basis points, or 0.03 percentage point, to 10.84 percent, according to a Royal Bank of Scotland index.

The premium investors demand to hold Italy’s 10-year bond instead of German bunds, the region’s benchmark, gained nine basis points to 503 basis points as of 12:26 p.m. in Rome. The euro gained for a second day against the dollar, adding 0.7 percent.

“We are moving in parallel with the global markets and tracking the euro’s increase against the dollar,” Emir Baruh, a currency trader at Akbank TAS, said in e-mailed comments.

Turkey’s central bank will sell a maximum of $100 million for liras in auctions today and tomorrow should the auctions be deemed necessary, the bank said in an e-mailed statement today.

--Editors: Peter Branton, James Kraus

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at

To contact the editor responsible for this story: Gavin Serkin at

The Aging of Abercrombie & Fitch
blog comments powered by Disqus