Italy Ups The Risk And Resurrects Some Ghosts
The alliance between two parties with extreme ideologies which are poles apart has created an unorthodox programme for government in Italy, which could heighten financial instability in the EMU.
italian 10 years bond
Italy: Underlying Risks For The Differential Between Spain And Italian Bond Yields
The yield differential between the Italian and Spanish 10-year bonds has risen 21 basis points since the start of September and stands at around 34 basis points. We expect a recovery in the differential, which will be gradual and limited to 50-55 bps, up until Italy holds its referendum on constitutional reform.