Italy's Bund spread belies political crisis

Italy_Europe_Flag_575x375_Adobe_160120
By Lewis McLellan
15 Jan 2021

Italia Viva has withdrawn its ministers from the support of the Italian government, sparking a political crisis in the country. However, Italy’s sovereign bonds are trading within a comfortable range versus Bunds thanks to the support of the European Central Bank.

Analysts believe that prime minister Giuseppe Conte will attempt to form a new government with the support of the Five Star Movement, replacing the lost votes from Italia Viva with centrist members of parliament.

Italy held an auction on Thursday, raising €2.75bn with a tap of its 0% ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial

Want to learn more? View subscription options