Italy’s Bonds Fall as Services Output Shrinks More Than Forecast

Italy’s 10-year government bonds declined after a report showed the nation’s service sector, based on a survey of purchasing managers, shrank more last month than economists forecast.

Italy’s 10-year yields approached a six-week high as the Repubblica newspaper reported former Prime Minister Silvio Berlusconi may consider withdrawing his support for the coalition government before a vote on whether to oust him from the senate following his conviction for tax fraud. Portugal’s 10-year yield reached a six-week high as a report said European Union and International Monetary Fund officials are discussing a precautionary program for the country.