Italy's Tria is said to have threatened to resign

According to Reuters, citing a Five-Star party government source

• Says that Tria is holding on to a deficit target of 1.6%
• Says that Italy's ruling parties (Lega and Five-Star) are in agreement
• And that is not necessary to have a deficit target of 2.4% but must be above 2%

The headline here won't go down too well for Italian bonds. For the moment, it's not providing any further drag in the euro but as long as headlines like these persist then it's not going to help the single currency rebound all too much as well.

This is essentially saying it's either Tria agrees to have a deficit about 2% or they get rid of Tria and go ahead with the 2% deficit anyway.