Italy's Napolitano speeds search for new government


ROME (Reuters) - Italy's president held urgent talks on Tuesday aimed at naming a prime minister to head a coalition government backed by the rival parties on the centre-left and centre-right and end two months of post-election stalemate.

Hopes that a government can be formed quickly gave a further boost to financial markets on Tuesday, with the yield on 10-year Italian government bonds dropping below 4 percent and the spread, or risk premium over German bonds, narrowing further.

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