Italian bond sale shows investors’ faith in ECB

A successful Italian bond auction yesterday pointed to confidence among investors the ECB will keep its word and take strong enough measures to get a grip on the eurozone’s debt crisis.

In Beijing, German chancellor Angela Merkel appeared to temper China’s fears about the damage the crisis could wreak on the world economy, while French president François Hollande, on a visit to Madrid, said he could see a case for ECB intervention.

Since ECB president Mario Draghi vowed a month ago to do whatever it takes to save the euro, Spanish and Italian bond yields have fallen markedly.