Italy's Bonds Drop as Leaders Defiant Before Eurogroup Meeting
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Italian bonds declined as euro-area finance ministers were set to discuss how to deal with a government that is showing few signs of capitulating on its budget plans.
Short-dated bonds led the selloff and domestic stocks snapped a three-day rally before the gathering that takes place in Brussels Monday. Italy’s leaders have until Nov. 13 to submit revised spending plans after the European Commission took the unprecedented step of rejecting initial proposals to widen the deficit. Deputy Prime Minister Luigi Di Maio said in an interview with the Financial Times that the government’s plans would not change.