Europe’s Political Anguish Spreads From Spanish to Italian Bonds
- Spread between two countries narrows to least since December
- Five Star Movement’s Raggi wins first round of Rome vote
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First Portugal, Spain and the U.K., now it’s getting political for bonds in Italy.
After some investors sold Spanish debt as parties struggled to form a government, signs that Italian Prime Minister Matteo Renzi is starting to lose a so-far solid backing pushed his nation’s yields up. The premium Spain pays on its securities compared with Italy has shrunk to the smallest since the Iberian country’s inconclusive election in December.