Italian Bonds Fall on Berlusconi Vote, Margin Charge Speculation

Italy’s bonds fell after Prime Minister Silvio Berlusconi won a routine vote without an absolute majority, casting doubt on the nation’s ability to enact austerity measures under his leadership.

Italian 10-year yields climbed to a euro-era record amid speculation LCH Clearnet Ltd., Europe’s largest clearing house, will raise its margin charge on the debt, a rumor denied by the company. German government bonds pared a decline after European Central Bank council member Jens Weidmann said the bank can’t bail out nations by printing money.