The Italian Treasury said Friday it raised euro5.88 billion ($7.8 billion) in its auction of 10- and 5-year bonds, shy of the
euro6 billion target. The interest rates on the 10-year debt rose from 4.45 percent last month to 4.48 percent while the rate for five-year bonds was 3.26 percent, up from the 3.23 percent.
Italy also saw its borrowing costs inch up in Thursday's auction of six-month paper. The country had been enjoying several months of falling interest rates thanks to reforms introduced by Premier Mario Monti and the European Central Bank's offer to buy up bonds.