The spread between Italy's 10-year
BTP bond and the German Bund rose sharply in early trading on
Monday, when it crossed the 170-basis-points mark and reached
175, before dropping back to 169 points.
The peak was the highest level since August 2017 for the
spread, which is a key measure of investor confidence.
The yield on the BTP went up 2.29%, the highest level since
mid July 2017, before falling to 2.24%.
The Milan stock exchange's FTSE Mib index shed 2% in early
trading on Monday, taking it below the 23,000-points mark,
before regaining most of the losses.
After close to an hour and a half of trading it was 0.5% down
at 23,340 points.
Investors are watching the political situation closely with
the 5-Star Movement (M5S) and the League set to present the name
of the person they want to be the next premier to President
Sergio Mattarella later on Monday after they reached a deal for
a government.
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