Italian Bonds Tumble As Di Maio Threatens "Tough Tactics" Over EU Budget

Italian bond markets and bank stocks are getting battered following remarks by Deputy PM Luigi Di Maio warning that the Italian government is ready to repeat the tough tactics it used to win concessions from the European Union on migration in the forthcoming battle over the budget.

“We want to discuss these reforms with the European Union to obtain the margin for maneuver that will allow us to implement those measures” Di Maio said.

“That means doing the same as we did on immigration.”

The reaction was instant with BTP yields rising and prices dropping.

2Y BTP prices (the most frequently bought in Italy's buybacks) are sliding...

And 10Y Yields are jumping...

Just when you thought it was all safe again. Italy’s populist coalition wants enough flexibility to introduce a flat tax and a citizen’s income in next year’s budget without running foul of EU budget restrictions...

“It is possible to introduce both this measure and a flat tax and to respect European Union deficit limits, because this is a structural reform for Italy,” Di Maio said. “The European Union must listen to us in this phase when we want to protect citizens facing a social emergency.”

How flexible Brussels will be, we will have to see - we would expect the 'compromise' to be measured in "number of migrants."


LawsofPhysics Wed, 08/08/2018 - 11:34 Permalink

Well, with all the "official" numbers indicating that "everything is awesome", one has to wonder why the fuckers in banking and finance still need access to free/cheap money and the SAVERS continue to get screwed!?!?

CarpetShag PrezTrump Wed, 08/08/2018 - 11:49 Permalink

So true. ZH comments and top board have become infested with shills, spammers, trolls, saboteurs and pysop-operatives and and need a radical fumigation. Ninety percent of the 40+ articles per day are just regurgitated MSM bullshit, you have to search for the remaining real content with a microscope. In a year even that will likely have disappeared.

In reply to by PrezTrump

pods PrezTrump Wed, 08/08/2018 - 11:58 Permalink

I wish I could move back to the basement. That place was epic.  Sega, fridge full of beer, strip pool, strip darts. Then cool off in the pool and toss a couple steaks on the grill.  I'm not fat either. 

As for caring what I have to say, why is ZH any different than real life? Nobody gives a fuck about anything anymore. Life is a game of trying to fill that empty hole in your soul with useless trinkets to release that tiny bit of dopamine to keep the gun barrel out of your mouth for another day.  Nobody GAF about how the world really works.  Those that do have meetups online to find other misanthropes.  Ya think we all found ZH on accident?

In reply to by PrezTrump

lock-stick Adolfsteinbergovitch Wed, 08/08/2018 - 13:31 Permalink



•• Adolfsteinbergovitch ("I TORMENT THE WOMAN WHO SUCKS DICK!")


•• Leakanthrophy (PORN for Jesus!)

•• Cryptopithicus Homme (bitcoin spammer - imaginary "friend")

•• Free This (ABOVE, in all his 7th grade glory - JACKASS  as new icon!)


•• MoreSun (whacked, OH SO WHACKED!!)

•• Africoman

•• Sanctificado

•• beemasters

•• PrivetHedge

•• Cheolli

•• bobcatz

dozens and dozens and dozens of banned log-on's -- more than seven years!


....and all the while, the pathetic little SPAMMER sits in his leaky, moldy, smelly single wide in Western New York, surrounded by garbage and dirty clothes, trying to find his dick amidst rolls of fat, talking to his ACTION FIGURES and wondering where his life went.



In reply to by Adolfsteinbergovitch

MusicIsYou Wed, 08/08/2018 - 11:44 Permalink

Uh oh, what does Italy have up their sleeve? Are they going to throw olives and grapes at people? Watch out, Italy is going to launch olives and grapes at you at a whopping 10,000 millimeters per second. You better watch out otherwise Italian men might pound you into the ground because their average height is 162.5 centimeters, and that sounds a lot larger than 5 feet 9 and 1/2 inches. Because ya know 7.62 millimeter sounds larger than .30 caliber, because "7" is a larger number. Europeans have always had a penis complex. I guess we should thank their penis complex for the metric system. Well you know those Europeans, they just twist their way of thinking, therefore it is no wonder Muslims are plowing over Europe.

pods Wed, 08/08/2018 - 11:49 Permalink

As bad as the US is with the dots and chinamen stealing white collar jobs and beaners the blue collar, all one has to look at Europe and the types that are "migrating" there to realize things can always be worse.

It's not Europe's fault, it's mine. I used to collect coins in those little milk cartons that helped feed Africa.  That helped them mature long enough to have more Africans.

DarkPurpleHaze Wed, 08/08/2018 - 11:51 Permalink

A secret US Treasury bailout might be coming Italy's way at some point unless Trump wants to inflict an unrecoverable wound onto the EU and publicly flirts the idea of possibly helping his new EU friend.

That flirtation and tease would submarine the EU. If the EU insists on ignoring Trump's Iran sanctions he'll talk the gloves off. It's my opinion that he's been moreorless restrained and we haven't seen him go full Mount Vesuvius yet.

The EU's days are numbered and the USD and stock/bond markets will do semi-crazy things that'll eventually necessitate a new 21st century Washingtion Agreement due to USD strength that'll jack up US markets.

To Hell In A H… Wed, 08/08/2018 - 13:03 Permalink

Italy is in more debt and has greater unfunded liabilities than Turkey and Iran, yet these factors do not matter when grading Italian bonds and their interest rates @ 2.9%. Really? A completely rigged system. Some countries are favoured and some get smashed. Logic and economics is not a factor. It's what the markets say it is and that's it. Burn it fucking down.