Foreign investors dumped Italian government bonds again in August after a month of suspension, according to data released on Friday.
Foreign holdings of Italian government bonds were cut by 17.4 billion euros ($20 billion) in August, according to the balance of payments data released by the Italian central bank.
After the victory of the national election by the populist camp, Italy's bonds began to sell in May. Since then, concerns about the government's budget plan have put Italy's borrowing costs on a four year high. Foreign capital holdings of Italy bonds fell to more than a year low.
Foreign investors released 58 billion euros of Italy bonds in 5-6 months, but in July they made up 8 billion euros.
Foreign investment in Italy has exacerbated the situation in the second-generation Pan-European real-time and full automatic clearing system (Target 2).
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