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A big short growing in Italian debt
A surge of interest in Italian bond futures may be a sign of a substantial short position building up in short-dated Italian debt, raising the specter of more violent bond selloffs as budget negotiations between Rome and Brussels unfold. As Italy’s anti-establishment government attempts to pass an expansionary budget in the face of opposition from the European Union, investors are ramping up their use of a product that is increasingly being used to take bets that more losses are in store for the country’s bonds. Italy has the biggest outstanding bond market in the euro zone and futures trading has rocketed in ... (full story)