MILAN (Reuters) - The yield premium Italy’s 10-year bonds pay over equivalent German paper rose sharply on Tuesday with two traders citing a report about eurosceptic economist Paolo Savona being picked as economy minister in a new anti-establishment government.
News agency Ansa reported that a meeting was taking place between the leaders of the Five Star Movement and the far-right League to discuss the list of new government ministers.
The yield premium Italian 10-year bonds pay over German Bunds rose by 7 basis points in the span of minutes to top 180 basis points.
In recent years, Savona has been quoted in the national press as saying that the single currency is a “noose around Italy’s neck.”
Reporting by Sara Rossi and Elvira Pollina, writing by Valentina Za,