Italian assets fell sharply early Thursday after Prime Minister Mario Draghi resigned after members of his governing coalition refused to back him in a no-confidence vote.
Traders dumped Italian government bonds, pushing the yield on 10-year paper BX:TMBMKIT-10Y up 14 basis points to 3.51%. The yield spread with Germany, a closely watched gauge of stress for Rome’s debt, jumped to 224 basis points, as doubts grew that Italy could fulfil conditions necessary to receive its €200 billion ($204 billion) share of the EU’s coronavirus…
