Italy's borrowing costs continue to fall

AP News
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Posted: Sep 25, 2012 6:35 AM
Italy's  borrowing costs continue to fall

ROME (AP) — Italy is finding it easier to raise money on the world's debt markets thanks to the European Central Bank's decision to help lower the borrowing costs of heavily indebted countries.

On Tuesday, the government raised €5.5 billion in a series of auctions for two-, four and 10-year bonds at lower borrowing costs compared to previous sales.

The interest rate in the sale of €4 billion in 2-year bonds was 2.5 percent, down from 3 percent at a similar auction in August, while the rate on 4-year bonds was 2.46 percent and 3.68 percent on a 10-year issue. Demand was strong at 1.65 times.

The ECB announced earlier this month that it would buy unlimited amounts of short-term debt provided countries first ask for aid from the eurozone's bailout fund.