Italian borrowing costs rise further on fiscal concerns, European Central Bank

Big 5

Borrowing costs in Italy rose further on Wednesday, hit by signs the new government wasn’t planning to tone down its big-spending plans in Europe’s third-biggest economy, while hawkish comments from the European Central Bank also added upward pressure.

Benchmark yields in 10-year maturities IT10YT=RR on the government bond market in Italy rose 15 basis points to 2.91 percent while yields on two-year maturities surged 39 basis points at 1.38 percent IT2YT=RR.

The jump in eurozone bond yields pushed up Spanish and Portuguese bond yields by 6 to 12 basis points across the board.