Italian Bonds in Meltdown Spark a Global Flight to Haven Assets
- Safety of Treasuries and gilts sought, European stocks plunge
- Euro-area markets dogged by poor liquidity, traders say
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Italian two-year bonds plunged the most since the euro came into existence on concern the nation could leave the common currency.
The move coursed through global financial markets, with investors shunning the securities of Europe’s southern nations and fleeing to the safety of U.S. Treasuries and U.K. gilts. Europe’s benchmark stocks index, the Stoxx 600, fell into negative territory for the year. In Italy, President Sergio Mattarella has summoned premier-designate Carlo Cottarelli later in the day, with a swearing-in ceremony possible tomorrow.