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Italy pays higher yields in latest bond sale

Rates on Italian 15 year bonds rise to 4.9%
Rates on Italian 15 year bonds rise to 4.9%

Italy was forced to pay more to investors to sell three year and 15 year bonds amid the country's continuing political uncertainty.

The Italian Treasury said it raised €5.32 billion - less than the €5.5 billion on offer - in today's sale that tested market sentiment for the third-largest economy in the euro zone.

Interest rates on 15 year bonds rose to 4.9% from 4.8% in February with three year bonds' interest rates rising to 2.48% from 2.3% last month. Demand for both was 1.28 times the offer.

Last month's national elections ended in a deadlock with no clear winner. Parliament convenes for the first time on Friday, paving the way for talks on forming a new government to begin next week.