Italian Bonds Slump as Monti Says He’ll Resign; Greek Debt Gains
This article is for subscribers only.
Italian government bonds slumped, with the 10-year yield climbing by the most since August, after Prime Minister Mario Monti said he would resign as he has lost support in Parliament.
Two-year yields jumped to the highest level since September as former Prime Minister Silvio Berlusconi and his allies withdrew support for Monti’s government, threatening to derail passage of the 2013 budget. Italy is due to sell bonds and bills this week. Spanish securities also dropped while French, Belgian and Austrian 10-year yields fell to euro-era lows. Greek bonds advanced as the country extended the deadline for a buyback of its debt.