Italian Bonds Slide After Italy's New Prime Minister Spooks Markets With "Radical" Plans

The eye of the hurricane may have passed over Italy and the winds are again starting to pick up speed, because shortly after Morgan Stanley laid out what a worse case scenario for Rome could look like (ugly, read here), Italian bonds started selling off again, with 2Y yields rising to session highs following Italian premier Conte's inaugural speech in which the populist premier spooked markets by reiterating that the new populist government will pursue a radical policy program, and highlighting legislative priorities that will be extremely costly - including the right to universal income, minimum wage, overhauling the healthcare system, prioritizing social rights, and so on - all without saying just how these will be paid for (spoiler alert: much more debt).