Italy bonds fall as 2-year yields rise

ITALY’S bonds fell, with two-year yields rising to the highest since before the ECB began buying the nation’s debt last month, as concern the debt crisis is worsening sapped demand at a note sale yesterday.

Greek two-year notes slid for a 10th day, pushing yields toward 77%, as credit-default swaps showed the nation has a 98% chance of default in the next five years.

Italy sold €3.9 billion of five-year notes at an average yield of 5.60%, up from 4.93% at the previous auction of similar-maturity debt in July.