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Italy govt bond yields rise amid banking crisis

Concerns about the banks and political risks could prove a headwind for the bond market

BAD LOANS: ECB has asked Banca Monte dei Paschi di Siena (above) to slash its bad debts by 40 per cent over three years, heaping more pressure on Rome and Brussels to stabilise the Italian banking system.


ITALIAN government bond yields rose on Monday as worries about the country's banks and some 20 billion euros (S$30.6 billion) of issuance in the region this week combined to brake a post-Brexit tumble in regional borrowing costs.

Italy's banking sector is saddled with 360...