, Columnist
Italy’s Politics Get Real for Bonds
Any hint that the budget could get delayed gets debt investors worried.
Stability needed
Photographer: Giulio Napolitano/BloombergThis article is for subscribers only.
All of a sudden politics matters to Italian bonds. Disruption around an election process that was never smooth to begin with drove 10-year yields up 10 basis points on Tuesday to 1.85 percent, the highest level for six weeks.
In the process most of the spread tightening to German bunds since the March 4 election went away.