October 9, 2018 / 10:58 AM / 7 months ago

Italy's Tria says govt will do whatever necessary if spread balloons

ROME, Oct 9 (Reuters) - The Italian government will do whatever is necessary to calm markets if the spread between its benchmark 10-year bond yield and the equivalent German bund balloons, Economy Minister Giovanni Tria said on Tuesday.

Italian yields have risen sharply in recent weeks on fears the coalition spending plans are unsustainable. Tria told a parliamentary commission that he was sure the so-called spread would fall once he had explained the budget clearly, but said the government was ready to act if things got out of hand.

“A spread at 400, 500? We are committed to making the spread reflect the (economic) fundamentals. If it goes to 500, the government will do what it needs to do,” Tria said. “If everyone sells, we will have capital outflows and we will have to face the situation. Faced with a financial crisis, the government will do what it must do, as (ECB president Mario) Draghi did.” (Reporting by Giuseppe Fonte; Editing by Crispian Balmer)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below