"‘Draghi’s resignation comes as a market surprise and injects some fresh political uncertainties for BTP spreads to contend with. The next focus for markets will be the 20th July when Draghi addresses Parliament which could hold the key regarding the future of any potential government. It’s plausible Draghi can remain PM or a new technocratic government is installed. Either way, this situation complicates matters for the ECB. All in all, we would therefore remain cautious on such spreads for the near-term.’