Berlusconi Yields Rise on Threat of Early Election: Euro Credit

Investors are driving up Italy’s borrowing costs as Prime Minister Silvio Berlusconi struggles to retain enough support to prevent early elections in Europe’s most-indebted nation.

The extra yield that investors demand to hold 10-year Italian debt rather than German bunds exceeded 167 basis points today, the highest level in a month. The premium is rising as the government prepares to sell as much as 9.5 billion euros ($12.8 billion) of bonds today and tomorrow.