Italy borrowing costs mixed in huge bond deal amid tensions
AFPROME -- Italy raised nearly 4.0 billion euros (US$5.3 billion) in a bond auction on Tuesday, with borrowing costs rising for short-term bills as fresh political uncertainty grips the eurozone's third-biggest economy.
August 28, 2013, 11:46 am TWN
The Italian Treasury said it sold 2.983 billion euros in zero-coupon bonds to be redeemed in June 2015 at a rate of 1.871 percent compared to the 1.857 percent demanded by investors in the last similar sale in July.
It also placed 736 million euros in inflation-indexed bonds due in 2018 at 2.30 percent from 2.91 percent in June, as well as 265 million euros in similar bonds due in 2026 at 3.30 percent from 3.75 percent in June.
Italy saw borrowing costs rise on the secondary market on Monday because of rising tensions in the uneasy coalition between the center-left Democratic Party and Silvio Berlusconi's center-right People of Freedom.