LONDON, March 26 (Reuters) - Italian bond yields rose on Monday, underperforming euro zone peers on further signs that the anti-establishment 5-Star Movement and the anti-migrant League might explore an alliance to form a government.
The head of the 5-Star Movement at the weekend praised the League's leader, Matteo Salvini, after the two parties agreed a deal to elect parliament's speakers.
Italy's 10-year bond yield rose as much as 5 basis points in early trade to 1.92 percent, pushing the gap over benchmark German Bund yields to 139 bps from around 134 bps on Friday. (Reporting by Dhara Ranasinghe, editing by Larry King)