Italian government bond yields jumped to one-month highs on Tuesday, possibly due to fears that the European Union (EU) may take disciplinary action against Italy.
The 10-year Italian government bond yield clocked a high of 3.71 percent yesterday. Further, the spread between the 10-year Italian yield and its German counterpart rose to fresh 5.5-year highs above 321 basis points.
The rise in Italian yields, however, is not yet big enough to cause a serious concern about the health of Italy’s banks, which hold billions of euros worth of government debt, European Central Bank supervisor Daniele Nouy said on Tuesday.
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