Rates rise on Italian bonds at auction
Three-year BTP reaches highest level since October 201212 September, 11:45
The Treasury sold all four-billion euros' worth of the three-year bonds it put up for sale, but it had to give an average interest rate of 2.72%, up from 2.33% at an auction in July.
The rate also climbed at an auction of 15-year BTPs, with 1.5 billion euros' worth going at an average rate of 4.88%, up from 4.67% at a sale in June.
The Treasury also sold two billion euros worth of CCT bonds, which are index-linked to the eurozone's inflation rate. Italy's borrowing costs have been rising amid fears Premier Enrico Letta's fragile grand-coalition government may collapse in the fallout of last month's decision by the supreme court to uphold a tax-fraud conviction against centre-right leader Silvio Berlusconi.