10-year yields in Italy are up by nearly 20 bps to 3.67% at the moment as bonds slump heavily at the start of the day. Italian prime minister, Mario Draghi, looks set to resign later today and that should bring about early elections in the country. This is proving to be a bit of a blow to the ECB ahead of their policy decision today as bond spreads continue to widen. The spread between 10-year Italy and Germany yields have now jumped to 242 bps: