Italy Sells Bonds Amid Poll Uncertainty

The euro traded 0.3 percent from a seven-week low against the dollar before Italy sells bonds today after the nation’s inconclusive elections sparked the biggest advance in sovereign yields in 14 months.

The euro is heading for its first monthly loss since July as European Central Bank President Mario Draghi prepares to give a speech in Munich. Results showed pre-election favorite Pier Luigi Bersani won Italy’s lower house by less than a half a percentage point, while Silvio Berlusconi, the former premier fighting a tax-fraud conviction, gained a blocking minority in the Senate.

“These Italian elections are further evidence that Europeans are a bit over this whole austerity phase,” said Stan Shamu, a markets strategist with IG Markets Ltd. in Melbourne. “We’ve got an Italian bond auction later today and if we continue to see yields — particularly in Italy — spike higher, then that would be a further negative for the euro.”


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