Expectations are for an auction yield of around 3.32-3.39%, close to secondary market levels, said Barclays analysts.
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Demand was strong despite a record-low auction yield of 1.622%.
Italy's short-term borrowing costs rose at an auction of six-month bonds, which were sold at a gross yield of 1.24%, up from 0.73% at a similar auction a month ago.
Fresh developments on the European Union debt crisis front saw a successful auction of Italian bonds overnight, at a lower yield than previous such auctions.
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Additional liquidity helped Spain auction its government bonds on Thursday, and the yield on two-year Italian bonds fell to its lowest level since October 2010.
The average yield of 1.77% was the lowest ever at an auction of that maturity.
After the auction, Spain's 10-year government bond yield rose above 5%.
Spain held a successful auction of 3-month bills came in at a lower yield than what the troubled country paid last month.
An auction of German 10-year bunds Wednesday produced the lowest yield since last July, which underscored the keener risk aversion in the market place this week.
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On the 10 year auction launched on August 12, Smith bought at par for a yield of 2.84% and made 7 points plus the coupon for a return of almost 10%.
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At an auction of 5bn euros' worth of two-year bonds, the yield was 0.29%, down from 0.39% last month.
In overnight news, a German two-year note auction saw the notes (also called Schatz) fetch strong demand with a yield of only 0.06%.
Italy held a successful auction of five-year government bonds Monday morning at a 6.29% yield, lending some ground beneath markets, which held onto its gains from late last week and opened flat.
Following the auction, the borrowing cost for the country implied by market prices rose further, with yield on 10-year Italian bonds rising to 6.77%.
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