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MILAN, Aug 30 (Reuters) - Italian borrowing costs on five-year and 10-year debt rose to their highest since December 2013 and March 2014 respectively at a bond auction on Thursday as investor concerns over the upcoming 2019 budget resurfaced.
The auction is closely watched as a litmus test of investor appetite, a day before credit rating agency Fitch is due to assess Italy’s creditworthiness.
Investors are concerned that tax cuts and welfare spending proposed by the ruling coalition could push up Italy’s debt, the highest among major euro zone nations.
Rome will unveil new public finance targets in September and the cabinet will approve the budget in late October.
For details of the bond auction, click on (Reporting by Francesca Landini and Giulia Segreti , editing by Stephen Jewkes)