Italy just held a bond auction, and it didn't go so well.
Demand fell and costs rose for Italy on bonds that will mature in 2015.
The country will pay 3.89 percent versus the 2.76 percent it paid last month to borrow for this length of maturity. That's the highest yield since January, according to Bloomberg.
Today's bond auctions—which also included bonds maturing in 2020 and 2023—missed Italy's maximum target of €5 billion, as the country only sold €4.88 billion in debt securities. On the other hand, this borrowing still hit the higher end of the country's targeted €3-5 billion.
Higher yields and falling demand suggest that investor concerns are mounting over Italy despite attempts to curb fiscal spending.
Admittedly, these borrowing costs are still down from those we saw late last year, as Italian yields were going through the roof. On the other hand, the steep jump in borrowing costs does not bode well for bond yields in the future.
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