Italy's cost of borrowing over six months sank towards 1 percent at an auction on Monday, the lowest in 17 months, as cheap loans from the European Central Bank fuelled banks' interest in lending to euro zone governments over the short-term. The auction offered some measure of the progress officials have made in easing the pressure on the bloc's third largest economy, lifting prices of Italian bonds ahead of a more challenging funding test on Tuesday. "It is a very good result," said Matteo Regesta, a strategist at BNP Paribas in London. "The dynamics for the 10-year sale are different ... (and) results could ... (full story)