August 9, 2019 / 6:18 AM / 2 months ago

Italy's bond yields rise after Salvini pulls plug on government

LONDON, Aug 9 (Reuters) - Italian government bond yields rose across the curve in early trade on Friday after League leader Matteo Salvini said the current government is untenable and called for early elections.

Short-dated bond yields were up 14-20 basis points in early trade to their highest level in six weeks, with the two-year bond hitting 0.241%%, up almost 20 bps on the day.

The Italy/Germany 10-year bond yield gap has widened to five-week high of 215 bps. (Reporting by Virginia Furness; editing Josephine Mason)

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