MILAN (AP) — Italy paid sharply higher borrowing rates in an auction that raised (euro) 567 million ($750 million), as markets continued to pressure the eurozone’s third largest economy to come up with reforms urgently.

Yields on 12-year bonds skyrocketed to 7.20 percent, a full 2.7 percentage points higher than last month.

While there were enough bids to cover the maximum sought of (euro) 750 million, the high borrowing rates persuaded the Italian Treasury to stick closer to the lower end of its planned issuance range.

The results will likely ramp up pressure on Premier Mario Monti, who is expected to announce additional austerity measures later this week.

Earlier Monday, the International Monetary Fund denied reports that it’s preparing a $600 billion rescue facility for Italy.