A Big Short Growing in Italian Debt

A Big Short Growing in Italian Debt
Tourists are seen at the Colosseum in Rome, Italy on Oct. 26, 2018. Ahmed Jadallah/File Photo/Reuters
|Updated:

LONDON—A surge of interest in Italian bond futures may be a sign of a substantial short position building up in the derivatives market as tensions rise over budget negotiations between Rome and Brussels.

The big short in the futures market reflects a buildup in speculative and hedging activity after a tumultuous summer in the Italian markets and also indicates rising concerns of capital outflows.