Italy Bonds Extend Drop as Investors Await EU Response to Budget
- Country’s government has set 2019 deficit goal at 2.4 percent
- Budget details including growth targets are yet to be released
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Italian bonds dropped for a third day as investors remain wary of potential friction between the populist government and European Union over the country’s budget proposal.
Two-year yields led increases with investors bracing for comments from EU leaders on the sidelines of a Eurogroup meeting in Luxembourg. Italy’s Five Star Movement-League coalition is still to lay out growth targets that formed the basis for the 2019 deficit target of 2.4 percent, which spooked investors Friday.