Italian Yields Rise to Record After Auctions; French Bonds Gain
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Italian bonds fell, pushing two-year yields to a euro-era record, as a surge in borrowing costs at a bill sale highlighted concern European leaders are failing in their efforts to resolve the debt crisis.
Italian securities dropped for a fifth day as the nation sold 8 billion euros ($10.6 billion) of six-month bills at a rate of 6.504 percent, up from 3.535 percent last month. The Treasury also auctioned 2 billion euros of zero-coupon bonds at 7.814 percent. French bonds rose for the first time in five days as the government said it will press ahead with an auction next week even after Germany failed to attract enough bids to cover a sale two days ago. German bunds extended a third weekly decline.