Italy paid the highest cost in eight months to borrow funds for two years at an auction on Thursday as investors remain worried about the prospects of the economy along with those of Spain.
The Italian Treasury raised EUR 2.5 billion from the sale of its zero coupon bond or CTZ due May 2014 against a target of EUR 1.5 billion - EUR 2.5 billion. The auction attracted bids totaling EUR 4.442 billion.
The yield rose to 4.860 percent, the highest since November, from 4.712 percent in the previous sale on June 26. The bid-to-cover ratio, which mirrors demand, rose to 1.78 from 1.65.
by RTT Staff Writer
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