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Italian bond yields continue to soar

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Italian bond yields continue to soar

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Illustrating now deep Italy is in the debt danger zone the country’s one-year government bond yields soared in the latest auction on Thursday.

Italy had to pay interest of 6.087 percent to get investors to buy those bonds which mature next November.

That compares with a yield rate of 3.57 percent at a previous sale of 12-month paper on October 11.

However analysts said the auction went better than feared and Rome did manage to sell all five billion euros worth of the bonds.

The last time yields were as high as that on similar bonds was 14 years ago when Italy was still using the lira.

The auction came as Italy’s ruling PDL party softened its insistence on early elections as the way out of a deep political crisis.

PDL politicians said they were considering the option of a government led by respected international figure Mario Monti.