Italy Sells 4.25 Billion of Bonds as Borrowing Costs Rise

Italy sold 4.25 billion euros of bonds, the maximum amount for the auction, and its borrowing costs rose as European leaders remained divided over how to stop contagion from the debt crisis.

The Treasury sold 3.5 billion euros ($4.4 billion) of the zero-coupon 2014 debt to yield 4.037 percent, up from 3.355 percent at the previous auction on April 24. Investors bid for 1.66 times the amount offered, down from 1.80 times last month. The Rome-based Treasury also sold 750 million euros of inflation-linked bonds due in 2016 and 2017 to yield 4.39 percent and 4.6 percent, respectively.