Inflation indexed bonds due in 2021 went for 3.68 percent from 3.45 percent in March, the Treasury said, but the rates for shorter-term bonds eased. Zero coupon bonds due in 2014 went for 2.532 percent from 3.064 percent last month and bonds due in 2016 went for 2.46 percent from 3.69 percent before. The Treasury had been aiming to raise a maximum of 5.5 billion euros. The differential between Italian 10-year government bonds and benchmark German ones rose after the sale and stock market was down 0.47 percent, mainly because of auto giant Fiat due to the crisis in car sales in Europe. Eurozone money markets were also impacted by a short-term debt auction in Spain earlier on Tuesday in which borrowing costs surged as the government resisted pressure to quickly seek a full-blown sovereign bailout.

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