Italian Bonds Decline as Berlusconi Threatens Government

Italian 10-year government bonds posted their first weekly drop in four after former Premier Silvio Berlusconi threatened to withdraw his party’s support for Prime Minister Mario Monti’s coalition government.

Monti Says Overhauling Italy’s Firing Rules Can’t Be ‘Taboo’

Feb. 2 (Bloomberg) -- Italy’s rigid firing rules can hurt economic growth and changing them to make it easier for companies to shed workers can’t be “taboo,” Prime Minister Mario Monti said.

Italy Five-Year Yield Tops 7%, Berlusconi to Quit

Italian bonds slumped, driving the five-year note yield to more than 7 percent for the first time since the euro was started in 1999, after LCH Clearnet SA raised the deposit it demands for trading the nation’s securities.