Italian borrowing costs ease

MILAN (AP) -- Italy saw its borrowing costs drop as it raised nearly €6 billion ($7.8 billion) in bonds Tuesday.

In a sign that market pressure is continuing to ease on Italian debt, the country paid rates of 3.41 percent on €4 billion in three-year bonds, down from 4.8 percent a month earlier. The sale was 1.4 times oversubscribed.

The country has seen its borrowing costs ease in recent weeks, after yields on benchmark 10-year bonds were pushed to the perilous 7 percent level last year. The Italian government has been trying to regain investor confidence by cutting public spending and reforming a sluggish economy.

Italy also sold €1.9 billion in bonds maturing in November 2015 and February 2017, well within the range offered.