Italy's election
result sends Asian and European bourses scuttling. Japan -2.3%, Hong Kong -1.3%, China -1.4%, India -1.3%. EU Stoxx 50 -2.6%, London -1.3%, Paris -2.2%, Frankfurt -1.6%, Italy -4%, Madrid -2.9%
Italian 10-year debt yields surge 21 bps to 4.69% following the election result and ahead of a Treasury auction of €8.75B in six-month bonds. Spanish 10-year yields feed off the anxiety to rise 9 bps to 5.26%. Ambrose Evans-Pritchard points out that it's unclear whether the ECB can "can continue to stand behind the Italian debt market...if there is no party able to deliver on austerity cuts and reforms demanded by Berlin and Brussels."
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