Italian bond yields rise on signs that 5-Star, League may form coalition

LONDON: Italian bond yields rose on Monday, underperforming euro zone peers on further signs that the anti-establishment 5-Star Movement and the anti-migrant League might explore an alliance to form a government.

The head of the 5-Star Movement at the weekend praised the League's leader, Matteo Salvini, after the two parties agreed a deal to elect parliament's speakers.

Italy's 10-year bond yield rose as much as 5 basis points in early trade to 1.92 percent, pushing the gap over benchmark German Bund yields to 139 bps from around 134 bps on Friday.