Italy has paid lower rates to easily sell Euro 6.5 billion ($8.15 billion) in treasury bonds, the third auction this week that saw the country's borrowing rates drop amid increased investor confidence in the country, AP reported. Italy's central bank said Thursday it sold five-year bonds at a 4.73 percent rate, compared with the 5.29 percent rate it paid at the last such auction in July. Ten-year bonds were sold at a 5.82 percent rate, down from 5.96 percent. Demand on the five-year bond was 1.46 times the amount on offer, while demand for the 10-year bond was 1.42 times the amount on offer. Borrowing rates for Italy and Spain have dropped sharply in recent weeks amid expectations the European Central Bank will approve a plan to buy those countries' government bonds.
