Markets

Italian bond futures fall after S&P credit rating downgrade

Published December 8, 2014 Updated December 8, 2014 07:58am

LONDON: Italian bond futures slumped in early Monday trade after Standard & Poor's cut Italy's sovereign credit rating on Friday to just one notch above junk.

In a blow for Prime Minister Matteo Renzi, who came into office in February pledging an ambitious reform agenda, the agency cut Italy's rating to BBB- from BBB, saying weak growth and poor competitiveness undermined the sustainability of its huge public debt.

Italian bond futures were down 63 ticks at 134.29, unwinding some of their sharp gains from last week.

Copyright Reuters, 2014