Italy easily raises $14.5 billion in auctions

ROME (AP) -- Italy has easily raised euro11 billion ($14.46 billion) in a pair of bond auctions that saw its borrowing rates decrease for the second day in a row.

Demand Friday exceeded analyst expectations in another indication that confidence was returning to Italy's finances thanks to austerity and growth measures imposed by Mario Monti's government.

Italy paid an interest rate of 1.96 percent on euro8 billion in six-month bonds, compared with 3.25 percent at a similar December auction. The borrowing costs for euro3 billion in bonds expiring in December was 2.21 percent.

On Thursday, Italy easily raised euro5 billion in the first test of market sentiment in the country's handling of its debt since Standard & Poor's cut Italy's credit rating by two notches on Jan. 13.