Italy sold 3.25 billion euros of 10-year bonds at a yield of 5.24 percent, the lowest since August 2011 and down from 5.5 percent at the previous auction.

The Treasury also sold 2.5 billion euros of 4.75 percent five-year bonds at 4.18 percent, compared with 4.19 percent at the previous auction on Feb. 28.

To contact the reporter on this story: Chiara Vasarri in Milan at cvasarri@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net