Election nerves push Italian bond yields past 2 percent for first time since October

FILE PHOTO: Italian Prime Minister Paolo Gentiloni attends a news conference
FILE PHOTO: Italian Prime Minister Paolo Gentiloni attends a news conference in Rome, Italy, December 23, 2016. REUTERS/Remo Casilli/File Photo

December 29, 2017

LONDON (Reuters) – Italy’s 10-year government bond yield <IT10YT=TWEB> topped 2 percent on Friday for the first time since late October, a day after the country’s president announced it would hold a general election on March 4.

The vote is expected to produce a hung parliament which could result in instability and possible market turbulence for the euro zone’s third largest economy.

(Reporting by Fanny Potkin; editing by Marc Jones)