'We should now call this a crisis': Italian bond yields surge to highest since 2012 amid snap election fears

Government bond yields soar

Mike Sheen
clock • 5 min read

Italian equities and bonds have sold off in morning trading today, with contagion spreading across European markets, as fears of a snap election as early as August intensified.

Investors were spooked by an intervention from Italian President Sergio Mattarella at the weekend to prevent the formation of a government by populist Eurosceptic parties Five Star Movement and the League. Investment Conundrums: Tilney's Godding - Italian political risk persists The pair performed well in the March election but the resulting hung parliament has meant the EU's fourth largest economy has been without a government since then. Fears over further political upheaval in the country sent yields on two-year Italian bonds soaring to as high as 2.83% on Tuesday morning (29 Ma...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Eurozone inflation dips below ECB target for the first time in over three years

Eurozone inflation dips below ECB target for the first time in over three years

Down to 1.8% in September

Valeria Martinez
clock 01 October 2024 • 1 min read
Investors raise alarm over impact of rising populism on European stocks

Investors raise alarm over impact of rising populism on European stocks

Political gridlock expected

Sorin-Andrei Dojan
clock 26 September 2024 • 4 min read
Partner Insight: Has the European credit cycle been extended?

Partner Insight: Has the European credit cycle been extended?

Derek Hynes, Fixed Income Portfolio Manager and Will Prentis, Fixed Income Investment Specialist at Wellington Management
clock 21 June 2024 • 4 min read
Trustpilot