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Italy again pays sharply higher borrowing costs to borrow money in the markets
MILAN (AP) ' Italy paid sharply higher borrowing rates in an auction that raised euro567 million ($750 million), as markets continued to pressure the eurozone's third largest economy to come up with reforms urgently.
Yields on 12-year bonds skyrocketed to 7.20 percent, a full 2.7 percentage points higher than last month.
While there were enough bids to cover the maximum sought of euro750 million, the high borrowing rates persuaded the Italian Treasury to stick closer to the lower end of its planned issuance range.
The results will likely ramp up pressure on Premier Mario Monti, who is expected to announce additional austerity measures later this week.
Earlier Monday, the International Monetary Fund denied reports that it's preparing a $600 billion rescue facility for Italy.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
MILAN (AP) ' The International Monetary Fund has denied a report that it is preparing a bailout fund for Italy.
The Italian daily La Stampa reported that the IMF was preparing a euro600 billion ($794 billion) bailout fund for Italy, which is struggling to manage its enormous public debt of euro1.9 trillion, which is equivalent to nearly 120 percent of the country's GDP.
An IMF spokesman said Monday that there are "no discussions with Italian authorities on a program for IMF financing."
Italy has seen its borrowing costs on its debt rise steeply in recent weeks ' with yields on benchmark 10-year bonds topping the 7-percent mark that has been the prelude to bailouts in other eurozone countries. Another auction of up to euro750 million is planned later.