Italian Assets Slump Again as Ripples Spread Across Europe

Italian assets were pummeled again on mounting concern over the populist coalition’s fiscal plans, with the moves rippling across European debt markets.

Bond yields climbed to the highest levels in almost three years, while the premium to cover a default in Italy’s debt was the stiffest since October. The local benchmark stock index dropped for a second day, while the euro remained under pressure as investors fret that proposal by anti-establishment parties to issue short-term credit notes -- so-called “mini-BOTs” -- will lead to increased borrowing in what is already one of Europe’s most indebted economies.