Last updated: October 28, 2011 2:39 pm
Italy’s borrowing costs soar at debt sale
By Guy Dinmore in Rome and Rachel Sanderson in Milan and David Oakley in London
Italy issued 10-year debt on Friday but paid the highest price since joining the euro as investors demonstrated scepticism over the centre-right government’s economic reform programme in the first bond auction in the region since new steps were agreed to tackle the eurozone debt crisis.
The yield on Italy’s March 2022 bond rose to 6.06 per cent from 5.86 per cent a month ago. The sale of the 10-year bonds was covered less than 1.3 times, but demand for the total sale of medium and long-term paper was sufficient for the Treasury to raise €7.94bn – at the top end of its target range.
http://www.ft.com/cms/s/0/c7d47b22-0146-11e1-ae24-00144feabdc0.html?ftcamp=rss#axzz1c5HinlMV
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