Concerns about Spain's deep budget problems pushed up borrowing costs sharply at an Italian bond auction on Thursday, signalling that markets doubt Europe's struggling economies are overcoming their debt problems. Yields on the three-year bonds hit 3.9 percent in the sale, more than one percentage point higher than at the last comparable auction a month ago and bringing an unwelcome rise in debt servicing costs as Rome tries to cut its budget deficit. Italy and Spain have traded testy comments in recent days on who is to blame for the rise in borrowing costs which has afflicted both countries as they struggle to meet deficit targets during a recession. Italian officials have been quick to...
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