Italy easily sells bonds but borrowing costs spike slightly

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Italy raised €11 billion ($14.1 billion) in a pair of short term auctions but had to pay slightly higher interest rates to get investors to part with their cash.

Particularly noteworthy was the increase in the interest rate on the one-year bonds to 1.91 percent from 1.69 percent on the previous issue. Demand was strong however, Wednesday's auction results indicated.

Over recent weeks, Italy has not been a primary focus in Europe's debt crisis. The yield on the country's 10-year bonds has dropped below a manageable 5 percent as investors have given their backing to the economic strategy of the government led by Premier Mario Monti.