Debt Crisis: Italy forced to pay record rates in ‘Black Friday’ bond issue
INDEBTED Italy was forced to pay record high rates in a €10bn bond issue but demand was high, the Bank of Italy said today.
The yield on its six month bonds surged to 6.504pc compared to 3.535pc for a similar sale on last month while the rate for bonds due in two years hit 7.814pc compared with 4.628pc.
The auction had been dubbed a patriotic exercise with some Italian banks waiving commission in the deal.
EU economy commissioner Olli Rehn is in Rome today for talks with Prime Minister Mario Monti who is heading up technocratic government in a bid to lead the economy from the abyss.
Yesterday German Chanceller Angela Merkel and French Prime Minister Nicolas Sarkozy agreed to changes to EU treaties in a bid to stop the rot but Germany is still refusing to accept that the European Central Bank would become the lender of last resort for indebted eurozone countries.
In the US, Black Friday, or the traditional start of the Christmas shopping period, is underway.
The day after Thanksgiving sets the pace for the season with more than 152 million people expected to hit the shops this weekend – up over 10pc on last year.
There are different theories on how the day got its name.
Some believe it was coined as the day that shops begin to make a profit or move “into the black” but others say it was first used by police in Philadelphia who were sick of passengers clogging up footpaths and traffic jams.