Italian yields rise on sovereign debt fears
{{#rendered}} {{/rendered}}Investor concern about Italy's ability to return its sluggish economy to growth push the country's borrowing costs up to their highest level since November in a sale of two-year bonds.
Italy Thursday paid 4.86 percent to sell €2.5 billion ($3.03 billion) in two-year debt, up from 4.71 percent a month ago. Demand was a strong — 1.78 times the relatively modest offer.
It was the highest rate paid on two-year bonds since Premier Mario Monti's government of technocrats took power with the remit of protecting Italy's economy from the European debt crisis.
{{#rendered}} {{/rendered}}Despite austerity and economic reform measures, investors are worried that Italy will not be able to control its public debt, which has reached 123 percent of GDP — the second-highest among the 17 countries that use the euro.