Tsipras Standing Ground Has Investors Fretting Over Italy Bonds

With Greece’s government and its creditors in no mood to compromise, investors are growing skeptical on how long the European Central Bank can insulate the rest of the region’s debt markets from the turmoil.

Italian bonds fell with Spain’s as Greek Prime Minister Alexis Tsipras’s government pledged to raise the minimum wage, a day after Dutch Finance Minister Jeroen Dijsselbloem said the European Union won’t renegotiate Greece’s bailout. So far, contagion from a selloff that pushed Greek three-year yields up almost 7 percentage points since the Jan. 25 elections has been contained after the ECB said it would start a sovereign-bond buying program from March.