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Ten-year bond yields in Italy have passed the psychologically important 7pc mark at which most economists agree borrowing costs become unsustainable, for the second time in a week.(Telegraph)
(Telegraph)Italy auctioned €7.49bn of three and ten year bonds this morning. It had hoped to sell between €5bn and €8bn.Yields on three-year bonds rose to 7.89pc, up 2.96pc on last month.The results place further pressure on Mario Monti, the technocrat prime minister, to drive through austerity measures.It was the third time in a week that Italy had to pay more than 7pc to auction debt.(All key measures of the money supply in the eurozone contracted in October with drastic falls across parts of southern Europe, raising the risk of severe recession over coming months.)