Inside Italy’s exploding spreads

Tuesday, 29 May 2018

Via Damien Boey at Credit Suisse:

More chaos in Italian politics and bond markets

Italy’s prime minister-designate Conte has given up on his mandate to form a populist coalition government after talks with President Mattarella collapsed. The likelihood is that fresh elections will need to be held later this year. In response to the news, Italian bonds sold off sharply, while German bunds rallied. The Italian-German sovereign spread now stands at 234bps – the widest level since late 2013.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.