Italy pays higher borrowing rates in bond sale

Associated Press
Italian Democratic party leader Pier Luigi Bersani speaks to reporters in Rome Saturday, March 23, 2013. Italy's president has tapped center-left leader Pier Luigi Bersani to form a new government following national elections that produced no clear winner. Italian President Giorgio Napolitano said Friday that Bersani was best positioned to create a government given "the most difficult circumstances." Bersani's coalition won control of the lower house but not enough seats to control the Senate, creating political gridlock. (AP Photo/Mauro Scrobogna, Lapresse)
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Italian Democratic party leader Pier Luigi Bersani speaks to reporters in Rome Saturday, March 23, 2013. Italy's president has tapped center-left leader Pier Luigi Bersani to form a new government following national elections that produced no clear winner. Italian President Giorgio Napolitano said Friday that Bersani was best positioned to create a government given "the most difficult circumstances." Bersani's coalition won control of the lower house but not enough seats to control the Senate, creating political gridlock. (AP Photo/Mauro Scrobogna, Lapresse)

MILAN (AP) — Italy has paid slightly higher interest rates to raise 3.8 billion euros ($4.9 billion) in bond sales amid political uncertainty.

The treasury paid a rate of 1.75 percent in the sale Monday of 2.8 billion euros in 12-month bonds, up from 1.68 percent at the last such auction last month.

It raised another 990 million euros in the sale of 15-year and 5-year bonds. Though demand was strong — more than double the amount offered for the longer-term bonds — Italy did not raise as much as it could have because of higher interest rates.

Center-left leader Pier Luigi Bersani is holding consultations on forming a new government following elections last month that ended with no clear winner. He is expected to announce his results in coming days.

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