Italy prepares to sell bonds

Italy is set to lead a surge in eurozone government bond supply on Tuesday in what would be the first major test of investor sentiment after concerns over the future of Prime Minister Matteo Renzi intensified.

The yield on Italy’s 10-year BTP bond rose 1.5 basis points to 1.13 per cent ahead of a planned sale of up to €7.75 billion of three bonds on Tuesday.