MILAN, Italy (AP) — Italy's borrowing costs on its three-year bonds skyrocketed to their highest level since December, as concerns about Spain and the state of Europe's economy continued to pummel Italy's finances.
In a bond auction Thursday, Italy paid 5.3 percent interest rates, up from 3.91 percent last month — to sell €3 billion ($3.76 billion) in three-year paper. The sale was fully subscribed.
Italy also was offering up to €1.5 billion in two other denominations.
Spain's decision over the weekend to seek a bailout for its banks has heightened pressure on Italy to speed its reforms and hold steady on austerity. Monti meets later Thursday with French Prime Minister Francois Hollande.
