Euro Spikes, Italian Yields Slide After 5-Star Calls On Savona To Withdraw Candidacy

Just as European markets were closing for the day with the Italian 2Y yield ominously back above 2% and the EURUSD trading in a tight range around 1.6130, a Reuters headline spiked the EUR and sent Italian yields quickly lower, when the newswire reported that in an attempt at compromise, the 5-Star party, the League coalition partner, called on the controversial euroskeptic candidate to head the economy ministry, Paolo Savona, to withdraw his candidacy to a government could be formed.