Tensions are growing between Italian leaders and top EU bureaucrats
Italy's 2-year bond yields are making fresh highs for the day up by a whopping 21 bps at the moment. In turn, that is leading the FTSE MIB to session lows as the index is now down by 1.1% and causing regional equities to stretch losses on the day too.
With markets focused on the US jobs report to come, there isn't a hint of a risk off tone in currencies thus far but Italy's woes continue to weigh on the euro as the single currency sits among the biggest losers so far today. EUR/USD now trades near the lows at 1.1492.
Italy's deputy prime minister Salvini came out earlier to criticise European Commissioner president Juncker and with unrealistic budget projections it sure looks like things will still get worse before they get better for Italy and the euro this month.
