Italy had to pay the most in 14 years to sell five-year bonds asParliament rushes to pass a 30 billion-euro ($39 billion) budgetplan that Prime Minister Mario Monti says will bring down recordborrowing costs.

The Rome-based Treasury sold 3 billion euros of the bonds, themaximum for the sale, to yield 6.47 percent, the most since May1997 and up from 6.29 percent at the last auction on Nov. 14.Demand was 1.42 times the amount on offer, compared with 1.47 timeslast month.

Monti's Cabinet approved a sweeping budget plan on Dec. 4 aimedat raising revenue and boosting Italy's anemic growth to persuadeinvestors Italy can tame the region's second-biggest debt and avoida bailout. Parliamentary committees signed off on the amended planlast night, paving the way for a vote this week in the lower house.Monti has warned that failure to approve it could lead to Italy's“collapse” and threaten the survival of the single currency.

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