The Italian government raised around 7 billion euros ($US8.96 billion) in medium and long-term debt on Thursday.
The interest rate on 10 year bonds was 6.98%. However, this was lower than the 7.56% it had to pay at the previous auction on 30 November.
The BBC reports 161 billion euros in debt repayments are due between February and April, all of which Italy will have to finance through new borrowing.
After the auction the euro fell to its lowest level against the dollar for 15 months, at $US1.287, ending at $US1.29 on Thursday.
On Wednesday, Italy raised 9 billion euros ($US11.8 billion) in very short-term debt.
