May 31, 2018 / 6:31 AM / a year ago

REFILE-Italian yields drop on renewed attempt to form government

(Changes day from Tuesday to Thursday in first paragraph)

LONDON, May 31 (Reuters) - Investors returned to the Italian government bond market on Thursday, forcing the country’s borrowing costs lower, on increased expectations an early election could be avoided and a political crisis could ease.

Italy searched for a last-minute exit from almost three months of political turmoil on Wednesday, with its biggest party 5-Star Movement looking to make a renewed attempt to form a coalition government with the right-wing League.

Italy’s 2-year government bond yield, which has been the focus of a recent selloff, was down as much as 50 basis points at 1.45 percent.

The country’s benchmark 10-year bond yield was down 20 bps at 2.85 percent, while the closely watched Italy/Germany 10-year bond yield spread tightened to 248 bps, as much as 22 bps tighter than Wednesday’s close. (Reporting by Abhinav Ramnarayan; Editing by Toby Chopra)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below