News Summary: Italian bond sale

Italy's borrowing costs drop despite political uncertainty; home sales dive in stuck economy

Associated Press

RAISING CAPITAL: Italy successfully sold €6.5 billion ($8.45 billion) in bonds the country's first debt auction since the country's Prime Minister Mario Monti announced his decision to resign. The low interest rate of 1.46 surprised some, given the political upheaval.

UNCERTAIN TIMES: Italy's political foundations have been shaken since Monti announced over the weekend that he would step down months before he was expected to do so. The departure will likely mean that elections will be held in February, about two months ahead of schedule.

NOT HOME YET: In a further sign of Italy's stagnant economic climate, the national statistics bureau ISTAT said that home sales slumped more than 23 percent in the second quarter of this year compared with the same period a year earlier.

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