Italian bonds declined for the third day amid reports that Finance Minister Giovanni Tria threatened to quit over the country’s budget negotiations, and after an auction of government debt drew weaker demand.
The minister’s offer to resign followed pressure from the Five Star movement over a proposal to fund a basic income for the poor, newspaper La Stampa reported Thursday, and comes as the nation risks a stand-off with the European Union over fiscal deficit rules. Tria’s assurances that Italy would respect EU budget rules helped fuel a rally in the country’s debt earlier in the month.
