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Italy's Target 2 liabilities sink to 14-month low in June

MILAN, July 5 (Reuters) - The Bank of Italy's liabilities towards other euro zone central banks shrunk sharply in June, reaching a 14-month low and returning to where they stood before the current populist government was elected, data showed on Friday.

Italy's so-called Target 2 debt fell to 447.58 billion euros ($503.98 billion), the lowest level since April 2018, compared with 486.496 billion euros in May, the Bank of Italy said.

A country's Target 2 position is monitored as a sign of financial stress and imbalances within the euro zone. Target 2 debt could rise, for example, due to capital outflows.

Italy's Target 2 debt hit an all-time record high last August of 492.53 billion euros. ($1 = 0.8881 euros) (Writing by Alessia Pé Editing by Mark Bendeich)