Italy sells bills with higher borrowing cost

By @ibtimes on

Italian Treasury sold 11 billion euros of bills, where the auction saw solid demand and rise in yields. The government borrowed 8 billion euros from the 361-day bonds with a surge in borrowing cost to 2.84% compared to 1.405% in the last auction on March 13. Yet, the bid recorded a rise to 1.52 times versus 1.38 times the previous month.

Also, 3 billion euros were gathered from the selling of three-month securities with a soar in yield to 1.249% from 0.492% last month.

The rise in yields reflect the worries in markets that the European debt crisis is not easing, especially with mounting speculations Spain may ask for an international bailout, thereby causing a spread of debt contagion to other highly indebted nations in the region.

Tomorrow, the Treasury girds for selling 5 billion euros of three-year notes.

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