Italian Markets Convulse After Budget Standoff With EU Deepens
- Ten-year yield breaks above 3.5% for first time since 2014
- Deputy Prime Minister Di Maio shrugs off EU criticism of plans
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A slump in Italian assets deepened after a tug-of-war between the government and the European Union over its budget intensified.
Yields on benchmark 10-year bonds rose above 3.5 percent for the first time in four years while stocks approached a bear market after the European Commission said the populist coalition’s plans for a wider deficit are in breach of common rules. German bonds and the yen rallied as investors sought the safest assets.