Italy Pays More to Borrow as Budget Fight Brews

Italian bonds were being sold, even while investors bought other European government debt

ROME—Italy had to offer significantly higher interest rates to sell its bonds Thursday, a sign of the rising anxiety surrounding Italy’s finances and its leaders’ looming clash with the European Union over its budget plans.

The Italian Treasury sold €6.5 billion ($7.5 billion) of bonds of different maturities, yielding up to 3.79%. Some bonds with the same maturity yielded significantly less at auctions in July and September, indicating that investors now view Italy as a riskier bet.

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