Italy’s Treasury sold EUR8.75 billion worth of six-month government bonds at an average yield of 1.237% earlier in the day, up from 0.731% at a similar auction last month.
Demand was steady, with bids exceeding supply 1.44 times versus a "bid-to-cover" ratio of 1.64 in January.
The yield on Italian 10-year bonds stood at 4.77% following the auction.
Meanwhile, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.34% to trade at 1.3108.
European stock markets held on to sharp losses. Italy FTSE MIB Index plunged 4.2%, the EURO STOXX 50 dropped 2.3%, France’s CAC 40 declined 2%, Germany's DAX tumbled 1.8%, while London’s FTSE 100 fell 1.2%.