Borrowing cost stays high for Italy’s Monti

ITALY sold €7bn in one year debt at near-record highs yesterday, as Friday’s summit failed to calm market fears over the weak sovereign.

The yield came in at 5.952 per cent, just below the euro-era high of 6.087 per cent paid on a similar issuance in November. The sale was covered 1.9 times.

Italy’s issuance was in contrast to Holland’s. The Dutch government paid a negative yield of 0.007 per cent on €1.1bn of debt maturing in March, reflecting its “safe haven” status..