Italy's 10-year borrowing cost climbs to 3.4%

Italy's 10-year borrowing costs reached their highest level since March 2014 after a senior official in the ruling party, the ruling party, said most of the country's problems would be solved. he was returning to his own currency.

Italy would benefit from more favorable economic conditions outside the eurozone, said Claudio Borghi, president of the ruling ruling party of the League.

The yield on the 10-year government bond rose 11 basis points to 3.4%, exceeding the level reached after a sharp sell on May 29, as fears of redenomination were at their peak.

In comparison, the implicit cost of Ireland's 10-year loans was 0.96%.

The yield spread between closely watched Italian-German bonds reached 296 basis points, the widest spread since the May 29th sale.

The country's two-year government bond yield rose six basis points to a one-month high of nearly 1.43%, and five-year government bond yield years rose 9 basis points to a record high of almost 2.65% over four months.

Fears surrounding the budget plans of the populist Italian government also weighed on the euro.

"I am really convinced that Italy would solve most of its problems if it had its own currency," Borghi said in a radio interview.

Mr Borghi is a Eurosceptic economist and chairs the Budget Committee of the Lower House of Parliament.

The head of the European Commission warned of a Greek-style crisis, while assuring that the country had no intention of getting rid of the euro but had not soothed the nerves.

In an environment of risk, the dollar appreciated against almost all of its major peers and emerging market assets fell.

While an agreement between the United States and Canada to reorganize the trade agreement between the Nafta and Mexico boosted the global risk appetite earlier this week, investor sentiment remains fragile, while the list of threats to the markets remains unclear.

Beyond Italy, Sino-US tensions have resumed again after the Chinese navy escorted an American missile destroyer from the waters near the islands of the South China Sea, according to the report. incident published by Beijing.

Elsewhere, oil traded near its highest level in almost four years, as the slowdown in drilling activity in the United States worsened worries about supply losses for Iran and Venezuela.

Reuters, Bloomberg and Irish Examiner