Italy's borrowing costs rose sharply at an auction on Wednesday, in the first test of its ability to borrow money long-term at affordable rates after the country's inconclusive election result. Italy sold the new 10-year government bonds at a yield of 4.83%, up from 4.17% at its last sale in January. The yield provides an indication of the yearly interest rate Rome would have to pay to borrow new money.
But it did sell all 6.5bn euros' worth (£5.6bn) of 10- and five-year bonds. The new five-year bond was sold at a yield of 3.59%, up from 2.94% in January. The higher borrowing costs at the auction had been expected, as yields had risen on Tuesday after the parliamentary election revealed no clear winner in both houses.THE EURO AND THE EU ARE DOOMED.
THE LONGER THEY TRY TO SAVE THEM, THE WORSE/DEEPER HOLE THEY ARE DIGGING FOR THEMSELVES.
IF SPAIN AND GREECE AND ITALY HAD THEIR OWN CURRENCIES, THEN THEY'D BE CHEAP AS DIRT RIGHT NOW AND THEIR COMPANIES WOULD BE DING A HUGE EXPORT BUSINESS.
BUT AS LONG AS THEY'RE TRAPPED IN THE EURO, THEY'RE EPORTS WILL DWINDLE.