Italy's debt costs at four-month high after election

MILAN (Reuters) - Italy's borrowing costs rose to their highest in four months on Wednesday at the first bond auction since this week's inconclusive election but solid demand from domestic investors eased fears that the political deadlock could destabilize Europe's second-biggest sovereign debt market.

The level of demand brought some relief to the market after the extreme volatility seen immediately after an election in which no party won enough seats to govern.