LONDON, May 17 (Reuters) - Italian borrowing costs resumed their rise on Thursday to approach three-month highs as the anti-establishment 5-Star and the far right League approached a deal to form a government which could implement high-spending policies.
Yields on benchmark Italian 10-year govermnent debt rose three basis points on the day at 2.13 percent, its highest since late-February.
Thursday’s rise in yields came after Wednesday’s 16 basis point spike, the biggest one-day rise since March 2017. Italian debt insurance costs were trading at four-month highs, having risen 14 bps on Wednesday.
Reporting by Saikat Chatterjee; editing by Sujata Rao