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Italy Yields Hit Post-2014 High as Borghi Nods to ‘Own Currency’

Yield gap over German bunds climbs above 300 basis points
Fiscal problems would be solved with own currency, Borghi says

Bloomberg business news — Italy Head of Lower House Budget Committee Claudio Borghi discusses the country’s budget plan.Source: Bloomberg)

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October 2, 2018, 6:41 AM UTCUpdated onOctober 2, 2018, 3:34 PM UTC

Italian assets were roiled yet again after a prominent euroskeptic said that the nation could resolve its debt problems with its “own currency.”

The yield on the nation’s 10-year bonds touched the highest level in more than four years after Claudio Borghi, head of the lower house budget committee, said the euro was “not sufficient” to solve Italy’s fiscal issues. Though he played down his comments subsequently, the euro declined.