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Risk Spreads Widen Sharply As Political Wrangling Continues

ITALY

The intraday reversal in BTP spreads continues, with a 9+bp move wider following comments by Lega's Salvini that they will only remain in Gov't if 5-Star is not in the governing coalition, and 5-Star saying PM Draghi hadn't met their demands.

  • Now 8bp wider on the session, up 18+bp from the post-Draghi speech lows.
  • At 211.7bp/Bunds, through Tuesday's high of 211.4bp.
  • Reuters reporting that the Senate is suspended for 90 minutes, "delaying an expected reply from Draghi".
  • EUR remains largely unaffected.

Source: BBG

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