Banca Monte dei Paschi di Siena SpA rose the most in almost four months, leading gains on Italy’s benchmark FTSE MIB Index, after Italian government bonds fell.
Italy’s third-largest bank rose as much as 9.8 percent, the biggest gain since Sept. 10, and was up 6.3 percent at 24.98 cents as of 11:54 a.m. in Milan. That gives the Siena, Italy-based bank a market value of 2.9 billion euros ($3.8 billion). The FTSE fell 0.4 percent.
Monte Paschi held about 22 billion euros of Italian sovereign debt at the end of September, more than three times its tangible capital. Chief Executive Officer Fabrizio Viola has said the bank will be able to break even on its Italian bonds on a spread between 150 basis points to 200 basis points.
Italian 10-year government bonds fell, pushing the yield on securities up three basis points, or 0.03 percentage point, to 4.26 percent. The Italy-Germany 10-year yield spread has narrowed to 274 basis points, the lowest level since August 2011, from 502 basis points a year earlier.