Italy crisis: Debt cost puts pressure on Mario Monti
Italy's cost of borrowing has risen again to the 7% danger level, putting the new PM Mario Monti under pressure as he works to form a government.
The figure indicates continuing nervousness about the country's high level of debt.
Mr Monti, 68, got the backing of both main parties during talks on Tuesday.
He is putting together a government led by technocrats, but it must still have parliament's support to push through tougher austerity measures.
Mr Monti has also met representatives of industrialists, trade unions and youth and women's groups.
The office of the Italian President, Giorgio Napolitano, said Mr Monti had succeeded in forming a new government.
Mr Monti is expected to meet the president and name his cabinet on Wednesday.
It is not clear if his cabinet will include politicians or consist entirely of technocrats such as himself.
Only one party, the right-wing Northern League, says it will withhold its support.
Angelino Alfano, leader of the centre-right People of Freedom Party (PDL) of outgoing PM Silvio Berlusconi, said "we think that the efforts of Professor Monti are destined to have a good outcome".
Crucially, the largest faction, the PDL - loyal to Silvio Berlusconi - has backed the Monti plan.
Mr Berlusconi continues to wield considerable influence in both houses of parliament. And rather ominously for Mr Monti, he is reported as having said that he may decide to "pull the plug" if he does not like what the new administration does.
But for now - and at least in public - the left, the centre and much of the right of the political spectrum here is going along with idea of installing what will be an unelected prime minister.
It is still not clear whether the new ministerial team will be made up solely of technocrats, or will include politicians as well.
Mr Monti is expected to present both his cabinet and his programme for government to parliament by the end of the week. And he will only be able to begin his work once it endorses both.
He has talked about the nation needing to be prepared to make sacrifices. And if he does intend to drive through a major, painful austerity programme it will be important for him to be able to show that he has substantial backing in parliament.
And the leader of the centre-left Democratic Party (PD), Pier Luigi Bersani, said "we encouraged Professor Monti to go ahead with determination".
"We did not set a deadline to the government," he added.Sense of urgency
Mr Monti, an unelected technocrat and former EU commissioner, has said he will "act with urgency" to address Italy's deep-rooted economic problems.
He also intends to remain in office until the end of the current legislature - 2013.
He has not yet revealed details of the economic reforms he might try to implement.
He was appointed on Sunday after emergency austerity measures were passed by parliament, triggering the resignation of Mr Berlusconi.
The Italian bond rate reached a record of 7.48% last Wednesday, draining investor confidence and hastening Mr Berlusconi's departure. Lenders worry that the government may not repay its debts.
In what was seen as the first test of Mr Monti's leadership, Italy sold 3bn euros of new five-year bonds on Monday.
However, it had to pay more to borrow the money, a rate of 6.29%.
Now it is above 7% again - the rate at which Greece, Ireland and Portugal were obliged to seek emergency bailouts from the EU.
Over the weekend, parliament passed a package of austerity measures demanded by the EU with the aim of balancing the budget by 2014. The measures foresee 59.8bn euros in savings, from a mixture of spending cuts and tax rises.