Italy survives bond auction test

Italy has paid the price for its latest political crisis as its borrowing costs rose to their highest in four months. The test came on Wednesday at the first government bond auction since an election that raises the prospect of prolonged political instability. The treasury was able to sell the four billion euros worth of bonds maturing in 10-years time that it wanted but the amount of interest investors demanded to buy them jumped to 4.83 percent – a level not seen since last October. Italy also issued 2.5 billion euros of a five-year bond on Wednesday, paying a yield of 3.59 percent, up from 2.94 percent one month ago. There were signs most of the buyers were Italian as foreign investors had stayed away. Financial analyst Antonio Landolfi said: “Actually,

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