World
Italy pays more to borrow after election turmoil
Posted: Feb 27, 2013 3:33 AM
Updated: Feb 27, 2013 3:36 AM
FRANKFURT, Germany (AP) Italy has seen its borrowing costs jump after an inconclusive election that has raised fears Europe's government debt crisis will flare up again.
The country has sold 10-year bonds Wednesday at a yield of 4.83 percent, way up from 4.17 percent last month. The yield on five-year bonds rose to 3.59 percent from 2.94 percent.
Bond interest costs are a key measure of Europe's effort to keep its debt problems in check. Higher rates mean more skepticism about an indebted country's ability to pay.
Election results Monday left uncertainty about the course a future government might follow. Most voters supported parties that rejected the austerity policies of Prime Minister Mario Monti.
