Italian market stress

Italian markets have been on edge since two populist eurosceptic parties formed a government in late May. The prospect of a budget clash with Brussels has sent bond yields higher and injected volatility into Italian shares. Here is the best of the FT’s news, analysis and opinion.

It has been left up to financial markets to act as a dam against irresponsible policies

Arcane bond market language becomes talk of Italy as populist government battles Brussels

Deputy PM hits out at investors and EU rules as borrowing costs hit 4-year high

Even a muted clash between Italy and Brussels will force some to sit on the sidelines

Yields fall at bond auction as coalition government readies a contentious budget

Coalition’s budget plans have intensified volatile trading for stocks and bonds

Sovereign debt sell-off leaves lenders with paper losses that have hurt stock

Government’s budget reassurance is welcome but needs to go further