Italy’s Bonds Fall With Its Banking Crisis Back in the Spotlight
- Italian-German 10-year yield spread widens for a second day
- Nation considers capital injection for struggling Monte Paschi
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Italy’s bonds fell for a second day as the crisis in the nation’s banking sector deepened, with regulators pressing lenders to raise capital and clean up their balance sheets.
Yields on the nation’s 10-year government securities rose, having reached their lowest in more than a year last week. Italy is considering injecting fresh capital into Banca Monte dei Paschi di Siena SpA to boost the finances of its third-biggest lender before stress-test results, a person with knowledge of the plan said.