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Italy's borrowing costs rise in 12-month bond sale


Italy's borrowing costs rose in a sale of 12-month bonds that raised 8.5 billion euros ($11.6 billion) on Friday in the first Italian Treasury auction of 2014.

The rate demanded by investors rose to 0.735 percent from 0.707 percent in a similar sale last month.

Demand was also down to 1.45 times above the offer, compared to 1.63 times more in the previous auction.

Italy's borrowing costs have fallen in line with other vulnerable eurozone economies in recent days on the back of a more optimistic economic outlook.

The differential or "spread" between Italian 10-year sovereign bond rates and benchmark German ones narrowed to less than 200 points earlier this week, although it has since gone above the closely-watched threshold.