BTPs Hit – Berlusconi parallel currency talk…
[NB This is a sample from the InTouch Fixed Income Service – sent to clients earlier]
BTPs: Looks like the article (flagged yesterday) in Il Gionrnale is still doing the rounds… Berlusconi suggesting a parallel currency in Italy.
The topic is not new but some think that Berlusconi’s prospects in Italy are improving. A few think this article is the reason for the ongoing weakness in BTPs (another 3bp wider). Bonos also following. FT Alphaville had an article including comments from Citi on the article.
FWIW there is some talk the far right parties (incl Berlusconi’s Forza Italia and Northern League) could hold a summit next month to discuss an alliances. Northern League’s leader Salvini has reaffirmed his commitment to look for an early exit from the euro.