10-year Italian bond yields climb as populist parties agree coalition

Euro up against most major currencies

After more than two months of deadlock following Italy's election in March, the anti-establishment Five Star Movement announced on Sunday it had joined forces with the far right League in forming a coalition.

Members of both parties met over the weekend to put together a policy programme with Five Star Movement leader Luigi Di Maio stating it had agreed the outlines of a government with the League. However, no prime minister has yet been selected. Di Maio and League leader Matteo Salvini both said they had made policies that will cut taxes, boost welfare and increase efforts to cap immigration, according to Reuters. Di Maio said: "We are writing history and we need a bit more time." Italian Elections 2018: 'The country is a euro-killer' On the news, 10-year Italian government bond yi...