The co-ruling Forza Italia and League parties will both not take part in a confidence vote called by Prime Minister Mario Draghi in the upper house.
Polls show the two centre-right parties could win an outright majority in a vote and that's something they appear to be angling for.
Italian 10-year yields are up 8 bps today while German yields are down 2 bps. If there's an election call tomorrow it could complicate the market reaction to the ECB's anti-fragmentation tool.
