Italy's Bund spread belies political crisis

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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Italia Viva has withdrawn its ministers from the support of the Italian government, sparking a political crisis in the country.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% ...

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