Italy sells 7bn euros of 5 and 10 year bonds

LONDON: Italy sold 7 billion euros of five- and 10-year government bonds on Tuesday, paying its lowest costs to borrow since May 2011 despite former Prime Minister Silvio Berlusconi's threat to bring down the government.

Italy sold the 4 billion euros targeted and paid 3.8 percent to borrow over five years, compared with 4.09 percent last time and an average of 4.65 percent over the year.

The new five-year bond attracted bids worth 1.49 times the amount on offer compared to 1.38 last time and an average of 1.49 this year.

The gross yield on a sale 3 billion euros of 10-year bonds was 4.92 percent.