Italy on Wednesday raised 12 billion euros (15.7 billion dollars) in a treasury bond auction that drew strong demand but at interest rates sharply higher than at a previous operation. Italy, with a public debt approaching 120 percent of gross domestic product, has lately prompted investor unease amid a wider eurozone finance crisis affecting Spain, Portugal, Ireland and Greece.
The Bank of Italy said the treasury had placed six-month bonds worth 8.5 billion euros and two-year bonds worth 3.5 billion euros. The offer was heavily oversubscribed, with six-month bonds attracting 13.198 billion euros and two-year bonds 4.139 billion euros.