Italy Borrowing Cost Rise at Auction

Italian borrowing costs rose at an auction today to the highest level since January, renewing fears and concerns the continuous pressure driven by the debt market might force large economies such as Spain and Italy to follow other highly indebted vulnerable economies such as Greece and Portugal.

The Italian Treasury sold 8.5 billion euros of bills maturing after six months, as demand for Italian debt was strong, rising to 1.7 times the quantity offered, compared with the previous of 1.5 times. Yields also surged, where Italy has to return 1.77% now, up from the previous of 1.12% recorded an auction earlier.