LONDON Dec 5 The 'No' vote in Sunday's Italian
referendum brings some clarity to markets after weeks of
uncertainty and makes Italy's government bonds attractive at
current levels, the head of European fixed income at Franklin
Templeton said on Monday.
"The referendum does bring some clarity and we don't have
that hanging over us any more. Now it depends on what the
government decides to do. I don't envision we will have early
elections in Italy," Franklin Templeton's David Zahn told
"Around these yield levels, Italian bonds looks attractive
and we would consider reducing our underweight position," he
Italian government bonds and banking stocks have been
pressured in recent weeks by concerns about the fallout of the
vote on constitutional reform, on which Prime Minister Matteo
Renzi has staked his future.
Renzi has said he will resign following the resounding 'No'
vote on Sunday.
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)