13 Apr 2012

Bond rates rise in Italy

6:52 am on 13 April 2012

Italy's cost of borrowing has risen, a sign of fresh concerns among investors about the country's ability to reduce its high levels of debt.

In a three-year bond auction, Italy paid an interest rate of 3.89%, up from 2.76% in a similar sale last month.

Italy raised 4.9 billion euros in the auction, which also included longer-dated bonds.

The rate on Italian bonds had fallen in recent months, but markets are again becoming nervous about Italy and Spain's ability to hit deficit targets.