Italian election threat drives BTP/Bund spread wider

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Italian election threat drives BTP/Bund spread wider

Matteo_Salvini_PA_230x150
Leader of Italian far-right party Lega Nord (Northern League) Matteo Salvini attends a press conference at the Foreign Press Association in Rome, Italy on February 22, 2018. Salvini and his coalition run for the March 4, 2018 general elections. Italian citizens will vote to elect members of Parliament and members of the Senate. Photo: Eric Vandeville/ABACAPRESS.COM | Vandeville Eric/ABACA/ABACA/PA Images

Rising expectations of a snap Italian election before the end of the year are threatening to send the spread between 10 year Bunds and BTPs wider by as much as 250bp, according to analysts.

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