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BTP sells off on the open on the back of......>

ITALY
ITALY: BTP sells off on the open on the back of the Di Maio related headlines
doing the rounds since the close yesterday, with further source reports adding
more credence to the claims in early European hours.
- "ITALY'S DI MAIO POISED TO RESIGN AS FIVE STAR LEADER: REPORTS (BBG)"
- EUR better offered on it
- FWIW: FIVE STAR'S DI MAIO TO MEET W/PARTY LEADERS 10AM WED: CORRIERE
- Hard to say what this will mean for BTPs definitively, widening vs. Bunds now
on greater immediate political uncertainty. BUT, the ruling coalition is one
operating out of necessity, not desire, i.e. it has the aim of keeping Salvini
out of power. If the coalition emerges stronger/more unified it may be a
different story. But obviously hard to judge before we know who replaces Di
Maio.
- Also worth highlighting weekend risk in the form of local elections. See MNI
POLITICAL RISK - Italian Regional Election Preview e-mail released at 11:55 GMT
01/21 for more colour.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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