Italy sells 5 bln euros of new floating rate bond, orders over 10.7 bln - lead

MILAN, March 23 (Reuters) - Italy raised 5 billion euros ($5.49 billion) from a new eight-year-long floating-rate bond launched on Wednesday, with final orders over 10.7 billion euros, a lead manager told Reuters.

In a busy week for euro zone debt issuance, Rome profited of relatively calmer markets after Russia's invasion of Ukraine started one month ago.

The European Union raised over 12 billion euros in a debt sale on Tuesday and Austria is on the market with a new 10-year note.

Federal Reserve chairman Jerome Powell said on Monday the U.S. central bank needed to move "expeditiously" to combat high inflation, pushing yields higher.

Italy has set the yield for the new issue maturing on Oct. 15, 2030 at 78 basis points over 6-month Euribor after initial guidance of around 80 bps, according to a memo seen by Reuters.

The reoffer price was set at 99.739%.

"Immediately after the invasion in Ukraine issuers stopped their activities but they cannot stop forever," UniCredit strategist Luca Cazzulani said.

"In addition given the 'hawkish' tone adopted recently by central banks there is the possibility that the longer you wait the more you risk rates rise again," he added.

The Treasury said on Tuesday it had given a mandate to BNP Paribas, Crédit Agricole, Intesa Sanpaolo and Mps Capital Services to manage the sale of the new bond.

The Economy ministry added that "the announcement of the bonds on offer in the medium-long term auctions scheduled for March 30, will take into account this transaction". ($1 = 0.9102 euros)
Reporting by Sara Rossi, Yoruk Bahceli; Editing by Toby Chopra and Maria Pia Quaglia

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