MILAN, June 5 (Reuters) - Italian sovereign bond prices and
bank stocks fell further on Wednesday after the European
Commission concluded that Italy is in breach of EU fiscal rules
because of its growing debt, a situation that justifies the
launch of a disciplinary procedure.
Italian banks .FTIT8300 were down nearly 1.8% to a day low
by 1039 GMT following the news, while the yield on 10-year
government bonds rose five basis points to hit the day's high at
2.575%. IT10YT=RR .
If the European Union states back this assessment in the
next two weeks, the EU executive could subsequently recommend to
start the procedure, a move expected before a meeting of EU
finance ministers in early July.