MILAN Feb 25 Italy's two-year borrowing costs
rose slightly on Monday, showing investors were cautious few
hours ahead of the results of a wide open general election.
The treasury sold 2.818 billion euros ($3.71 billion) of
two-year zero-coupon bonds, just below a maximum planned amount
of 3 billion euros. It paid a yield of 1.682 percent, up from
1.43 percent at a similar sale one month ago.
Demand was healthy and borrowing costs at auction came out
below secondary market level of 1.80 percent.
Exit polls soon after 1400 GMT could spark an initial market
reaction with a relief rally seen likely if preliminary results
hint to a pro-reform centre-left government.
On Monday Italy offered also two inflation-linked BTPei
bonds maturing September 2021 and September 2026 respectively.