LONDON Dec 9 Italian bond yields rose, while
safe-haven German bond yields extended their falls on Friday on
heightened concerns about the future of troubled Italian lender
Monte dei Paschi.
A consortium of investment banks that must decide whether to
underwrite a privately-backed 5-billion euro rescue plan for the
bank believes there is not enough time and no willing
investors to execute the deal by a year-end dead line, a source
said on Friday.
Another source told Reuters earlier that the European
Central Bank had rejected a request by the ailing lender for
more time to raise capital, in a move that piles pressure on the
Italian government to bail out the bank.
Ten-year Italian yields reversed earlier falls, and were
almost 1 bps higher on the day at 2.05 percent,
widening the gap with German peers to around 172 bps.
Germany's 10-year Bund yield was down 7 bps on
the day at 0.33 percent.
Monte dei Paschi shares tumbled 7 percent.
(Reporting by Dhara Ranasinghe; Editing by John Geddie)