Italy's latest bond auction on Tuesday drew more buyers than analysts anticipated, but it didn't enable the debt-laden country to avoid paying euro-era record-high yields to get the deal done.

The auction of 7.5 billion ($10 billion) in bonds over a range of maturities saw Italy paying yields of 7.89% on three-year bonds and 7.56% on 10-year paper. Despite the record yields, the auction attracted enough demand