Investors rejoice as Renzi readies coalition

Italian bond yields hit lows last seen before the eurozone sovereign debt crisis began as a fresh political face in the form of Florence’s former mayor, Matteo Renzi put a sheen on peripheral sovereign bonds. But Renzi’s incoming government, which was still being formed as EuroWeek went to press, may face challenges almost immediately. The first weeks of the new government could be crucial for the sovereign’s borrowing as the Treasury has yet to syndicate its first bond of 2014, which could come as soon as March.