Italy borrowing rates hit new record as vote looms

The Italian government's cost of borrowing has increased to a new record ahead of a crucial vote for Prime Minister Silvio Berlusconi.

The yield on Italian 10-year bonds increase to 6.73%, the highest since the euro was founded in 1999.

Investors hesitate that the eurozone's third-largest economy could become the next victim of the debt crisis.

Markets briefly rallied on Monday on bogus reports that Mr Berlusconi would step down.

Italy's benchmark 10-year debt has been increasing sharply and the yield is now past the point that forced other eurozone countries to seek a bailout.

The country's cost of borrowing has been increased than the 1.8% interest rate currently faced by Germany.

Greece, the Irish Republic and Portugal have all been bailed out.