Italian borrowing costs edge higher in bond sale

Italy pays higher interest rates to raise 5 billion euros in bond auction

Associated Press

MILAN (AP) -- Italy borrowing costs have edged higher in a bond auction amid investor concerns that easy access to money from the world's major central banks might tighten.

Italy raised 5 billion euros ($6.5 billion) in bond sales Thursday. It paid a rate of 4.54 percent for the sale of 10-year bonds, up from 4.14 percent at the last such auction last month. It paid 3.47 percent for five-year bonds, up from 3.01 percent in May. Still, demand was higher for both.

Italian borrowing costs have climbed from recent lows since the Federal Reserve last week said it would ease the amount of money it pumps into the financial system. That money had been encouraging investors to buy relatively riskier assets such as Italian bonds.

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