MILAN, April 11 Italy's one-year borrowing costs
rose for the first time since November at a sale of short-term
bills on Wednesday, mirroring fresh doubts about weaker euro
zone countries and highlighting market nerves ahead of a major
auction of three-year bonds on Thursday.
Rome paid 2.84 percent to sell one-year debt, up from 1.405
percent at the previous auction in mid-March as Spain's budget
troubles fuelled worries about the position of other heavily
indebted European economies, including Italy.
Steady domestic demand helped the Treasury raise the planned
11 billion euros in 12- and three-month bills, with bids
totalling 1.6 times the amount on offer, in line with a month
The average three-month auction rate more than doubled to
1.249 percent from 0.492 percent a month ago. The Treasury
issues these ultra-short maturities depending on its cash needs.
Italy's one-year borrowing costs had been declining since
mid-November when they hit a euro lifetime record of 6 percent
at the height of the crisis when the very existence of the
single currency appeared in doubt.
Last month they touched their lowest level since August 2010
at auction as massive injections of emergency funding into banks
by the European Central Bank early in the year pushed Italian
yields on secondary markets lower.
Wednesday's 12-month auction yield was the highest since
The Treasury returns to the market on Thursday offering up
to 5 billion euros of bonds, including its three-year benchmark
and three off-the-run issues.