'ItaLeave' Looms Again As Political Uncertainty Sends BTPs Plunging

Italian government bond risk is at its highest since before the Referendum as the constitutional court modifications push Europe's troubled country closer to early elections (and the potential for 'Italeave').

While it is no longer clear precisely on what side of the anti-establishment divide 5-Star leader Beppe Grillo can be found after his recently rebuffed attempt to merge with a pro-Europe federalist in the European Parliament, should the 5-Star movement win in the upcoming elections, Europe will be one stop closer to the populist tipping point, especially since that will likely mean new all time highs in global markets.

And it appears the bond market is starting to realize...


And while peripheral European bonds have been a bloodbath recently, Italy is the notable outlier...

At its highest risk over Spain since the European crisis.


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