LONDON, Jan 3 (Reuters) - Italian government bonds were set for their worst selloff in three months on Thursday, with analysts citing worries over struggling lender Banca Carige as the main trigger in a market with thin liquidity.
The European Central Bank appointed three temporary administrators on Wednesday to take charge of Italy’s Carige Bank in an unprecedented effort to save the struggling lender after it failed to raise new capital.
The yield on Italy’s 10-year bond was set for its biggest one-day rise in over three months, up 17.5 bps to 2.865 pct. Italy’s 2- and 5-year yields were up 11-14 bps on the day . (Reporting by Abhinav Ramnarayan; editing by Virginia Furness)