Italy’s Borrowing Costs Rise at Bond Auction After Downgrade
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Italian borrowing costs rose in the first bond auction since a credit rating downgrade last week that highlighted the economic risks of the country’s current political stalemate.
The Treasury in Rome today sold 3.32 billion euros of a 2015 note at 2.48 percent, up from the 2.3 percent paid Feb. 13 and the highest since December. The Treasury also managed to sell longer-term debt, placing 2 billion euros of securities maturing in 2028 at 4.9 percent compared with 4.805 percent when the same bonds were sold via banks on Jan. 15.