Forex Flash: Italian yields fall on coalition hopes – Deutsche Bank

In Europe, Italian bond yields fell 8bps on the day to 4.734% on hopes that a coalition government will be formed. This comes on the back of news that flagged investors’ attention, in which the Finance Undersecretary Gianfranco Polillo said that a union between Bersani and Berlusconi was the 'only possible way'. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “As we await for further clarity, Berlusconi is under investigation on suspicion of bribing a senator to change sides in parliament although his lawyer has denied the claim.”