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Italy Rocks European Bond Markets Over Its Deficit Once Again

  • German yields touch lowest level since 2016 on haven bid
  • Deputy PM Salvini has signaled willingness to breach EU limit
Updated on

Concerns of a renewed showdown between Italy and the European Union are rippling through euro-area assets.

Italian bonds and stocks tumbled, leaving investors scrambling for the safety of German bunds a day after Deputy Prime Minister Matteo Salvini ratcheted up tensions by saying he would be prepared to see the country’s deficit rise above EU limits if it were to boost employment.