Italy Rates Poised to Rise in Auction Amid Vote Concern

Italy will test markets today with the sale of long-term debt after borrowing costs rose to the highest in four months yesterday as inconclusive elections triggered renewed concern Europe’s debt crisis may deepen.

This week’s vote produced a hung parliament, with comedian Beppe Grillo’s anti-austerity movement winning more than 25 percent of the popular vote, creating the risk of another election later this year. The outcome raises the chance for prolonged uncertainty, putting Italy’s sovereign credit rating at risk for a downgrade, Moody’s Investors Service said today.