New Italian Government Killed, Impeachment Is On The Way For President Mattarella… Traders Worried This Could Be The ‘big Unwinding’ Of Italian Bond Markets!

(ANSA) – Rome, May 27 – 5-Star Movement (M5S) leader Luigi Di Maio said Sunday that President Sergio Mattarella’s decision to reject the nomination of Paolo Savona as economy minister was “incomprehensible”. “In that case it is no use voting, the same people always decide (on who governs),” Di Maio said on Facebook.
“There is a big problem in Italy that is called democracy.
“In this country you can be a condemned criminal, a tax-fraud convict, you can be (Foreign Minister Angelino) Alfano, you can have done crimes against the civil service, you can be under investigation for corruption and you can be a minister.
“But if you have criticised Europe, you cannot be economy minister in Italy. But it doesn’t end here”. M5S bigwigs are considering a bid to impeach Mattarella, sources said Sunday.
The anti-establishment movement is referring to Article 90 of the Constitution, the sources said. This states that “the President is not responsible for the actions performed in the exercise of his duties, except for high treason and violation of the Constitution, for which the President can be impeached by the Parliament in joint session, with an absolute majority of its members”.

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Italian PM RESIGNS after President vetoes anti-EU Minister facing now IMPEACHMENT calls
ITALY’S newly-appointed Prime Minister Giuseppe Conte has resigned after President Sergio Mattarella vetoed the appointment of anti-euro professor Paolo Savona as Ministry of the Economy out of fear he would push Italy out of the euro, leading parties to call for his impeachment and new elections.

Italy’s Conte Fights to Form Team as Ally Threatens New Vote

FORZA ITALIA! Traders worried this could be the ‘big unwinding’ of Italian bond markets!

Italian bonds have witnessed one of their worst trading weeks since the euro zone sovereign debt crisis, with many traders getting a stark reminder of the volatility that once characterized markets in the region.

On Friday, two-year Italian bond yields rose 35 basis points in one day — almost equivalent to the entire range of the year for U.S. 10-year Treasurys. This was the weakest session in five years and continued a month that’s seen these yields rise 70 basis points in total.

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Yields move inversely to a bond’s price and a spike higher is seen as investors feeling more concerned about lending to Italy’s government. More specifically, traders usually sell short-maturity paper when there are growing credit risk concerns at a sovereign level.

Strategist: See more elections in Italy taking place in the fall from CNBC.

Ex-IMF official Cottarelli becomes Italy’s interim PM, charged with forming govt

Italian President Sergio Mattarella has appointed IMF official Carlo Cottarelli as the interim prime minister tasked with forming a new government.
The PM said elections will be held no later than August unless he wins the confidence of parliament.

President Mattarella announced his choice Monday, having diluted the deal between two Eurosceptic parties who had collective majority in the March elections and had since dedicated themselves to forming a new government.



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