The spread between Italy's 10-year BTP bond and the German Bund climbed to a post-October high of 165 basis points on Friday, with a yield of 2.22%.
The spread, a key measure of investor confidence, closed at 147 points on Thursday, having approached the 160 mark at one stage, as the anti-migrant, Euroskeptic League and the anti-establishment League close in on the formation of a new government.
The spread was hovering around the 130-points mark until Tuesday.
The Milan stock exchange's FTSE Mib index, meanwhile, shed 1.48% on Friday, taking it down to 23,449 points.
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