MILAN: Italy raised nearly 3.5 billion euros ($4.6 billion) in a short-term bond sale on Tuesday but at sharply higher interest rates amid fresh concerns over the eurozone outlook, the Bank of Italy said.
Rome issued bonds worth 3.44 billion euros. The offer included 2.5 billion euros in bonds due in 2014 which were sold to give buyers a yield, or rate of return of 3.35 percent, up from 2.35 percent at a similar sale in March.
The government also sold 501 million euros of inflation-indexed bonds due to mature in 2017 at 3.88 percent, up from 2.04 percent, and 441.5 million euros in bonds due in 2019 at 4.32 percent, up from 3.06 percent.
Italy's borrowing costs had been falling in recent months after Prime Minister Mario Monti implemented a series of budget cuts and pension reforms as well as launching key reforms aimed at boosting growth.
Fresh concerns, however, over whether fellow eurozone struggler Spain can stabilise its public finances, coupled with nervousness over the French presidential elections and the political crisis in the Netherlands has turned sentiment for the worse again.
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