Bond market in panic for crisis Italy

- For a moment there was a sigh of relief about the markets that there would be no government of two Eurosceptic parties in Italy. But panic soon gained the upper hand and interest rates on Italian government bonds rose sharply.

At the beginning of the afternoon, the yield on 10-year government bonds was 2.66%, an increase of 20 basis points compared to Friday. The interest rate on biennial government bonds stood at almost 50 basis points higher at 0.75%.

At the start of the day, the euro first rose 0.6% against the dollar, but fell around a lunchtime to a small loss.