MILAN, April 10 Italy's one-year borrowing costs
fell to the lowest level since January at an auction on
Wednesday, with some investors betting on a euro zone interest
rate cut in the coming months while chances of an early economic
recovery in the region are fading.
Rome sold 8 billion euros ($10.5 billion) of one-year bills
paying a rate of 0.92 percent, much lower than a yield of 1.28
percent paid at a mid-March sale.
Italian borrowing costs have now fallen back to levels seen
before an inconclusive end-February election that has so far
prevented the country from forming a new government.
Rome also sold 3 billion euros of three-month bills at a
yield of 0.24 percent. The treasury last sold three-month bills
in October 2012, paying a rate of 0.77 percent.