Italian bond yields on the rise following latest auction

The yield on 10-year Italian bonds has risen to 7.56% following the country's latest bond auction, which raised €7.5bn, just below its target.

The Italian govenment saw its cost of borrowing rise above the significant 7% level - the point at which Greece, Portugal and Ireland had to seek bailout cash - for the third successive auction. The auction saw €3.5bn of a new three-year bonds, €2.5bn of 2022 bonds and €1.5bn in 2020 bonds sold. Despite the high yields the auction was viewed as a success, almost reaching its €8bn target. The euro rose 0.8% to $1.3424 against the dollar following the sale.