UNCFF - Rome Is Burning - Again
On Tuesday, May 29, the Italian bond market suffered a dramatic meltdown.
Two days previous (so, on Sunday, May 27) the Five Star-League coalition's effort to form a government behind then premier-designate Giuseppe Conte collapsed, effectively leaving the country's political future up for grabs. Long story short, President Mattarella wasn't enamored with the idea of euro-skeptic Paolo Savona being finance minister.
That raised the specter of new elections.
Initially, the euro (FXE) responded favorably as investors were apparently prepared to accept the thesis that new elections were preferable (from a market perspective)