Italian rates stable in €6bn bond auction

Italy's borrowing costs were steady at 4.46 percent in a sale of 10-year bonds on Thursday that raised 2.5 billion euros ($3.3 billion), the Bank of Italy said. The rate had been the same in a similar sale in July. It also sold 3.5 billion euros of a new five-year bond due to be redeemed in December 2018 at 3.38 percent, which could not be compared to previous auctions. The auction was being closely watched by investors for signs of renewed turbulence for the eurozone's third-biggest economy following a landmark tax fraud ruling against former prime minister Silvio Berlusconi. But on Wednesday the government clinched a key deal to abolish a property tax in line with demands made by Berlusconi's People of Freedom party, one of two main partners in the uneasy right-left coalition. The tax decision staved off the prospect of an imminent collapse of the government, although there are concerns of further divisions ahead over plans to expel Berlusconi from parliament.