Italy govt bond yields rise amid banking crisis

London

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 billion euros of bad loans, a third of the eurozone total, and recent market turmoil has raised concern it might be hard for Italian lenders to raise capital in the market without triggering rules that could force losses on bond and shareholders.