Italian-German bond spread widens to 264 points
Investor fear over fate of Italian government drive up bonds27 September, 17:40
The spread between Italy's benchmark 10-year bond and the German equivalent widened to 264 basis points near the end of trading on Friday after gradually widening throughout the day.
The yield on Italian 10-year bonds rose to 4.41%.
The spread is a useful gauge of market confidence in Italy, and its widening suggests investors are worried about growing threats to Premier Enrico Letta's shaky coalition government.
Letta may be forced to call a confidence vote after partner Silvio Berlusconi's party vowed to quit parliament if the ex-premier is ejected from his Senate seat following a tax-fraud conviction.