Italy sells €2.98B of 10 year bonds at a yield of 4.45%, down from 4.92% in a previous auction and the lowest in two years. However, the bid-cover ratio falls to 1.18 from 1.43. The government also issues €3B of five-year paper at 3.23%, down from 3.8%. The total sale of €5.98B was at the top end of the government's target of €4-6B. In the secondary market, 10-year yields are -9 bps at 4.51%.