The ZEW Indicator of Economic Sentiment for Germany, owner of the euro zone's biggest economy, demonstrated that the region has picked up the pace of the recovery after enduring some setbacks in late 2011. Strong results of a bond auction in Italy, host of the third-largest economy in the euro zone, indicated leaders are beginning to seize control of the sovereign debt crisis.
"All in all, a good auction for Italy," market economist Annalisa Piazza with Newedge Strategy in London told Reuters. "This is a sign that the government's efforts to make significant changes in the Italian economy are actually 'buying' confidence amongst investors."
Italy sold equal to $7.9-billion-worth of debt, which will mature in November 2014. Yields fell to their lowest level in 11 months.
Bloomberg reports the average rate during the sale of 12-month bills in Spain fell to its lowest level since the beginning of the third quarter of 2010.
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