(AP) Italy enjoyed mixed results when it raised nearly 5 billion ($6.36 billion) from the bond markets in its first sale of very longer-term debt since May 2011.
The Treasury sold 682,500 in 30-year bonds at an interest rate of 5.33 percent. Bids were shy of the 1.5 billion maximum on offer.
A 15-year bond sale also fell short, netting 816,000 at a yield of 4.81 percent missing the 1.5 billion maximum.
However, Italy easily raised 3.5 billion in a sale of 3-year bonds with yields at 2.64 percent, down from 2.86 percent last month.
IHS Global Insight analyst Raj Badiani called the yields and demand tolerable rather than reassuring.
Italy has seen its borrowing costs fall since the European Central Bank unveiled its offer to buy short-term bonds in struggling countries. The country has nearly met its funding needs for the year, which Badiani said is a notable achievement given that Italy was under acute financial and political pressures in the second half of 2011.
He noted, however, that Italy's borrowing rates could rise again in the first half of 2013 as Italians vote to replace the current technocratic government with party politics. The markets, he said, will be looking for more liberalization once the election is over.
The risk is that the relatively unified approach to recent fiscal austerity and reform fails to survive the April 2013 general election, Badiani said.