Italian bonds have been dropping for two days in a row already, since concern over new government and its policy bothers investors, Bloomberg reports.

The leaders of decline are 2-year bonds that were subject to wide volatility during last week, when market faced new reality of Italian populist government as well as with its new plan that assumes significant increase in spending.

Long-term international investors turned away from buying Italian bonds, while hedge funds added them to short positions.

Yield of 2-year Italian bonds went up 24 basis points to 1,25% today morning in London. Yield of 10-year bonds went up by nine basis points to 2,92%.