Italy's rate falls in 6.5bn euro bond auction

MILAN: Italy raised 6.5 billion euros ($8.5 billion) in one-year bonds on Wednesday at a rate that was lower than last month despite increased tensions after Prime Minister Mario Monti announced he will resign.

The borrowing rate demanded by investors was 1.456 percent compared to 1.762 percent previously and demand was almost twice as high as the offer.