Milan - AFP
Italy raised 8.0 billion euros ($10.32 billion) in six month bonds at a lower rate on Monday in spite of political unease after threats by ex-premier Silvio Berlusconi to pull support for the government. Rates for the six-month paper dropped from 1.503 percent at the last similar operation in September, to 1.347 percent, according to the Bank of Italy. The auction followed a sale of medium and long-term bonds on Friday, at which the Italian treasury borrowed 4.0 billion euros at lower rates. Monday\'s sale followed a hot weekend in Italy, during which Berlusconi said his People of Freedom (PDL) party was evaluating whether to pull its support for Prime Minister Mario Monti in a move which would force early elections. Berlusconi -- who was found guilty of tax fraud on Friday -- was forced out in November as Italy struggled with the eurozone debt crisis. While a series of austerity measures and structural reforms imposed by Monti have calmed the markets, some analysts wonder if Berlusconi\'s threats may spark renewed tension.