Italy's Borrowing Rates Fall For 2nd Day Running

Published December 29, 2011 11:00AM (EST)

ROME (AP) — Italian media reports say the country saw its borrowing rates fall in a range of bond auctions for the second day running.

The ANSA news agency Thursday reported that Italy raised euro2.5 billion ($3.3 billion) of ten-year bonds at an average yield of 6.98 percent. Though that's lower than the 7.56 percent it had to pay at an equivalent auction last month, the country's borrowing rate remains uncomfortably close to the 7 percent level widely considered to be unsustainable in the long run.

Italy, which is the eurozone's third-largest economy, also sold euro2.54 billion of 3 year bonds at an average interest rate of 5.62 percent, far lower than the 7.89 percent rate it had to pay last month.


By Salon Staff

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