Italy Woes Rattle Markets, Revive EU Viability Angst: Roundup

(Bloomberg) -- Italy’s escalating political crisis rattled global markets amid concern that the European Union’s cohesiveness will be tested anew. U.S. assets looked like they might hold up, but equity selling and a Treasury rally picked up steam after the close overseas.

Here’s the roundup of coverage from Bloomberg News:

Bonds in Focus

Italian Bonds Caught in Meltdown Send Global Markets Into Panic
Treasuries Ease From Highs After Catching Italy Panic Haven Bid
Italian Bonds in Tailspin Draw Comparisons With Days of Crisis
Two-year bond yields in Italy surged the most since the euro came into existence as the nation’s populist leaders began mobilizing for an early election. That sent shock waves across Europe’s bond-trading floors, putting all eyes on upcoming auctions in Italy.

Italy Woes Rattle Markets, Revive EU Viability Angst: Roundup

Spreading Pain

Stock Decline Deepens as Italian Woes Jolt Assets: Markets Wrap
Euro Slides to 10-Month Low as Italian Bonds Tumble: Inside G-10
Italian Implosion Brings Bank Stocks Back on Radar: Intelligence
Global markets went into panic mode, with investors shunning securities of euro-area peripheral economies and fleeing to the safety of U.S. Treasuries and U.K. gilts. Volatility spiked as investors paid up to hedge. Beat-down Italian banks might be worth a flyer, though.

Italy Woes Rattle Markets, Revive EU Viability Angst: Roundup

Political Coverage

Italy May Be Headed for July Vote as Cottarelli Stumbles
Europe’s Fragility Is Exposed Again as Italy and Spain Flare Up
It Feels Like 2012 Again as European Markets Shudder Over Italy
Italy’s populist leaders, incensed by their failed bid for power, began mobilizing for an early election even as premier-designate Carlo Cottarelli puts together a cabinet to present to the head of state. Ignazio Visco, meanwhile, says Italy could lose an irreplaceable asset.

Bloomberg Opinion

Blame the Populists for Italy’s Constitutional Crisis: Editorial
Investors Split From Italy’s Establishment: Mohamed A. El-Erian
The European Central Bank Fiddles as Rome Burns: Marcus Ashworth
No, Italy Isn’t Stuck in a ’German Cage’: Leonid Bershidsky
Our stable of commentators weighed in on the divergence of views from the European establishment and investors, how the coalition itself may be to blame for the crisis and the ECB’s risk-taking.

To contact Bloomberg News staff for this story: Randall Jensen in New York at rjensen18@bloomberg.net

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With assistance from Editorial Board